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Commercial 
Organizations 


Commercial  Organizations 

Their  Function,  Operation  and  Service 


A  Compilation  of  Material  from  the 
Proceedings  of  the 


National  Association  of  Commercial  Organization 
Secretaries  and  its  Predecessors 

American  Association  of  Commercial  Executives, 

and  the  Central  Association  of 

Commercial  Secretaries 


With  an  Introduction  by 

Paul  T.  Cherington 

Edited  by 

William  George  Bruce 

r— -*=:<^vVi/>  Ji 

THE^  BRUCE  PUBLISHING  COMPANY 

MILWAUKEE,  WISCONSIN 


Copyright  1920 

by  the 

Bruce   Publishing  Company 


DEDICATION 

This  work  is  dedicated  to  that  type  of  Ameri- 
(•aii,  so  abundantly  found  throughout  the  land, 
who  gives  unselfishly  of  his  time,  thought  and 
effort  for  the  wellbeing  of  his  fellowmen;  who, 
through  the  medium  of  the  modern  commercial 
body,  promotes  the  economic,  civic  and  social 
progress  of  his  community;  who  daily  gives  ex- 
pression to  the  highest  aspirations  and  motives 
of  citizenship;  who,  through  constant  interest 
and  concern  in  his  home  town  contributes  a  real 
man's  share  towards  maintaining  the  prestige, 
power  and  prosperity  of  a  great  nation. 


^:5120G 


PREFACE 

The  literature  devoted  to  or*>auized  community  promotion 
along  economic  and  civic  lines,  as  exemplified  through  local 
commercial  bodies  in  the  urban  centers  of  the  United  States, 
has  been  found  to  be  extremely  meagre  and  unsatisfactory. 
For  the  most  part  it  has  been  fragmentary  in  form  and  has 
provided  nothing  in  the  way  of  a  comprehensive  and  helpful 
treatment  of  the  subject. 

With  the  growing  tendency  on  the  part  of  communities 
towards  material  and  social  progress  through  collective  effort 
this  dearth  of  instructive  literature  has  become  increasingly 
manifest.  The  theorist,  it  is  true,  has  spoken  variously  and 
voluminously  on  the  subject,  but  the  man  who  has  travelled 
the  road  of  experience  in  this  domain  has  thus  far  remained 
silent.  iVt  least  his  voice  has  not  gone  beyond  a  limited  range 
to  that  larger  constituency  which  stands  ready  to  listen  and 
profit  by  his  counsels. 

The  lessons  afforded  by  actual  service  have  been  exchanged 
by  commercial  secretaries  in  somewhat  restricted  circles.  But, 
here  authoritive  voices  have  enunciated  the  fundamentals  that 
must  be  observed,  the  methods  that  must  be  employed,  and  the 
results  that  may  and  can  be  achieved.  Splendid  studies  have 
been  made  by  those  actively  identified  with  successful  commerce 
bodies,  but  their  observations  and  conclusions  have  thus  far 
remained  imbedded  in  the  routine  of  convention  proceedings, 
and  hence  have  not  been  readily  accessible  to  the  larger  class 
of  students  in  this  field  of  activity. 

They  have  brought  guiding  principles  and  policies  into 
bold  relief,  constructed  the  organization  machinery  to  its  last 
detail,  outlined  the  mode  of  its  operation,  and  established  the 
relations  that  must  be  observed  by  the  active  factors  and  forces. 
They  have  touched  the  mainsprings  of  organization  success,  and 
created  the  modei-n  commerce  bod}^  as  defined  and  interpreted 
in  American  urban  centers. 

The   National    Association    of    Commercial    Organization 
Secretaries  and  its  two  pre<lecessors,  the  American  Association 
of  Commercial  Executives  and  the  Central  Association  of  Com 
mercial  Secretaries,  have  during  the  past  decade  produced  a 

7 


series  of  documents  which  constitute  a  valuable  contribution 
to  the  helpful  literature  on  the  subject.  They  cover  the  entire 
range  of  commercial  organization  eli'ort  and  constitute  the  first- 
hand expressions  of  those  who  have  served  actively  and  effi- 
ciently in  a  secretarial  or  directive  capacity. 

Those  who  have  been  actively  identified  with  this  field  of 
work  are  not  unmindful  of  the  fact  that  while  fixed  ideals  and 
standards  have  been  evolved,  further  refinements  and  defini- 
tions must  follow.  They  are  also  conscious  of  the  fact  that 
while  a  solid  foundation  has  been  laid,  the  super-structure  is 
subject  to  further  amplification  and  such  orientation  as  may 
express  the  aspirations  and  ambitions  of  their  projectors.  True 
progress  implies  constant  and  incessant  effort  in  the  direction 
of  better  things. 

In  compiling  and  editing  the  mass  of  manuscripts  submit- 
ted to  the  editor  a  line  of  inclusion  and  exclusion  was  rigidly 
drawn.  Many  of  the  earlier  manuscripts,  although  meritorious 
as  such,  had  in  the  light  of  newer  conceptions  and  experiences, 
become  obsolete.  The  trivial  was  discarded,  the  substantial 
was  preserved.  Every  document  was  weighed  as  to  its  value 
in  giving  momentum,  direction  and  effectiveness  to  organiza- 
tion and  secretarial  service. 

The  manuscripts  as  a  whole,  however,  proved  so  rich  in 
acceptable  material  that  it  was  not  difficult  to  select  a  series 
of  articles  covering  practically  every  phase  of  commercial  or- 
ganization labors.  In  their  entirety  they  form  the  first  com- 
plete and  authoritive  work  on  the  subject. 

There  are  hundreds  of  commercial  organizations  that 
render  service  in  an  intermittent  and  spasmodic  manner,  others 
that  have  been  lulled  into  a  state  of  lassitude  and  indiffer- 
ence, and  still  others  that  lead  an  aimless  and  useless  exist- 
ence and  live  in  name  only.  These  require  inspiration  and 
guidance  in  order  to  awaken  them  to  their  own  task  and  mis- 
sion. 

Thus,  it  is  confidently  believed  that  this  volume  which 
addresses  itself  to  those  engaged,  as  well  as  those  desiring  to 
engage,  in  commercial  organization  effort,  will  serve  as  a  stimu- 
lus to  wholesome  community  promotion  and  serve  as  a  helpful 
and  dependable  textbook  on  the  machinery  and  methods  that 
must  be  employed. 

The  Editor. 


CONTENTS 

Introduction 

PART  I.       Essentials  of  Efficiency  and  Character- 
istic Activities. 

PART  II.     Methods  of  Organization  and  Operation. 

PART  III.  Qualifications  and  Self-Training  of  Sec- 
retaries. 


TABLE  OF  CONTENTS 

PART  I 

Essentials  of  Efficiency  and  Characteristic 
Activities 

Page 
Introduction 15 

Chapter  I. 

An  Eflficient  Commercial  Organization. 

Wm.  George  Bruce 25 

The  Essentials  of  an  Effective  Organization. 

James  A.  McKibben 30 

The  Commercial  Organization  in  Town  or  Small  City. 

J.  P.  Hardy 34 

The  Chamber  of  Commerce  in  the  City  of  "Average." 

Joseph  F.  Leopold 37 

Chapter  II. 

The  Relations  between  Civics  and  Commerce. 

O.  B.  Towne 42 

Chapter  III. 

Industrial  Development  by  Chambers  of  Commerce. 

Glenn  A.  Bowles 50 

Industrial  Development  of  the  Small  Town. 

Wm.  S.  Millener 55 

The  Proper  Place  of  Industrial  Development  in  the  Work  of  Com- 
mercial Organization. 

Ralph  H.  Faxon 5S 

What  is  an  Industrial  Survey? 

A  Student   62 

Factors  in  Securing  Factories. 

J.  F.  Carter 70 

Industrial  Survey  of  the  City. 

Emmett  Hay  Naylor 77 

Chapter  IV. 

Agricultural  Activities. 

Major  H.  V.  Eva 86 

Agriculture  and  Commercial  Organization. 

Committee 88 

The  Commercial  Organization  Relation  to  the  Back  Country. 

Hon.  D.  F.  Houston 92 

11 


12  TABLE  OF  CONTENTS. 

PART  I— (Continued) 
Chapter  V.  Page 

Traffic  and  Transportation  Bureaus. 

Frank    Barry 09 

Transportation  Prol)lems— How  Shall  They  Be  Dealt  With? 

D.  P.   Chindblom 102 

Chapter  VI. 

Organization  Service  for  Retailers. 

Lee  H.  Bierce 113 

Chapter  YII. 

Plan  for  Temporary  Exhibitions. 

John  M.  Guild 119 


Chapter  VI 11. 

Conventions  and  Publicity  Bureaus. 

L.  II.  Lewis 134 

City  Publicity. 

Carl  Dehoney  and  Thorndike  Deland 139 


Chapter  IX. 

The  Mission  of  Trade  P^xtension  Journeys. 

Wm.    George  Bruce 143 

Trade  Extension  Through  Excursions. 

Walter  S.  Whitten 146 

Short  Trips  from  a  Jobbing  Center, 

E.   H.   Clifford 147 

Trade  Extension  Trips — Methods  and  Results. 

Leroy  M.  Gibbs 150 


Chapter  X. 

Charity  Endorsements. 

Howard  M.  Strong 160 


Chapter  XJ. 

Commercial  Arbitration. 

T.  C.  Huff 168 


Chapter  XII. 

Chamber  of  Commerce  of  the  United  States. 

Merle   Thorpe 180 


TABLE  OF  CONTENTS.  13 

PART  II 

Methods  of  Organization  and  Operation 
Chapter  Xfll.  Page 

Democracy  as  a  Factor  in  Chamber  of  Commerce  Membership. 

Howard  B.  Strong 193 

Chapter  XIV. 

The  Best  Method  of  Sustaining  and  Increasing  Membership. 

Byres  H.  Gitchell 197 

Membership  Development  and  Maintenance. 

G.  W.  Lemon 221 

Elements  of  Membership  Conservation. 

Robert  B.  Beach 226 

Membership  Methods  in  Small  Organizations. 

J.   P.  Hardy 234 

Sustaining  the  Interest  of  Members. 

James  A.  McKibben 236 

Rebuilding  an  Organization. 

Paul  V.   Bunn 239 

Chapter  XV. 

Keeping  Before  the  Public. 

Wm.    B.    Wreford 246 

Advertising  Methods  of  Commercial  Organizations. 

Fred   C.   Butler 248 

Promotional  Effort  and  the  Public  Press. 

Adolph  Boldt 257 

Keeping  the  Members  Informed. 

James  A.  McKibben 260 

Organization  Bulletins — Their  Hits  and  Misses. 

G.  W.  Lemon 265 

Some  Dangers  of  House  Organs. 

G.  W.  Lemon 269 

News  Value  in  Organization  Publicity. 

H.  F.  Miller 271 

Chapter  XVT. 

Some  Problems  of  Organization  Finances. 

Carl   Dehoney '. 275 

Budgets  for  Commercial  Organizations. 

A.  Heath  Onthanlf 278 

Organization  Costs  and  Results. 

Geo.  W.  Gillette 290 

Chapter  XVII. 

When  to  Hold  and  How  to  Conduct  Meetings. 

Major  H.  V.  Eva 301 

Conservation  of  Committee  Energy. 

S.  Christy  Mead 306 


14  TABLE  OF  CONTENTS. 

PART  II— (Continued)  Page 

Stimulating  Organization  Machinery. 

John  M.   Tuther 317 

The  Technique  of  Organization  Administration. 

Robt.    AVadsworth 323 

Chapter  XVIII. 

Annual  Reports — Their  Form  and  Value. 

Don   E.   Mowry 339 

Chapter  XIX. 

Methods  of  Recording  Minutes. 

James  A.  McKibhen 342 

Methods  of  Keeping  Records  of  Members. 

Robt.  B.  Beach 350 

Forms,  Records  and  Financial  Accounts. 

Committee 353 

Filing  Systems  for  Chambers  of  Commerce. 

S.  Christy  Mead 373 


PART  III 

Qualifications  and  Self  Training  of  Secretaries 
Chapter  XX. 

The  Qualifications  for  the  Secretary. 

Wm.  George  Bruce 389 

Chapter  XXI. 

The  Most  Helpful  Secretarial  Literature. 

Roland  B.  Woodward 396 

Chapter  XXII. 

What  Education  is  Doing  for  Secretarial  Efficiency. 

Prof.  Wm.  A.  Scott 408 

The  Universiity  and  the  Secretary. 

Prof.  Edward  D.  Jones 417 

Conscious  Training  for  Chamber  of  Commerce  Secretaries. 

Prof.  Paul  T.  Cherington . .'. 427 

Secretarial  Efficiency  from  the  Standpoint  of  the  College. 

Prof.  Alf .  L.   Smith 430 

Chapter  XXIII. 

How  to  Fail  as  a  Secretary. 

Munson  Havens 435 

Chapter  XXIV.  " 

The  National  Association  of  Commercial  Organization  Secretaries. 

Wm.  George  Bruce. 450 


INTRODUCTION 

The  Field  of  Chambers  of  Commerce 
Chambers  of  Commerce — American  and  Foreign 

By  PAUL  T.  CHERINGTON 

The  chamber  of  commerce  as  it  occurs  in  the  United  States 
is  not  exactly  like  any  type  of  organization  found  in  any  other 
country.  The  American  type  of  organization  may  be  best  de- 
fined in  somewhat  the  following  terms :  A  voluntary  organiza- 
tion of  business  7nen  approaching  the  problems  of  the  com- 
munity from  the  business  angle. 

The  three  characteristic  features  of  the  American  organi- 
zation by  this  definition  are:  (1)  the  fact  that  the  organiza- 
tion is  of  a  voluntary  character,  (2)  the  fact  that  it  is  dealing 
primarily  with  community  i)roblems,  and  (3)  the  fact  that  it 
approaches  these  problems  from  the  business  rather  than  from 
the  social  or  any  other  side.  Orgjanizations  of  this  type,  in 
other  words,  clearly  have  their  roots  in  the  established  busi- 
ness interests  of  the  community  although  much  of  their  work 
is  concerned  with  what  are  really  civic  affairs. 

American  chambers  of  commerce  clearly  are  not  an  entire- 
ly new  creation.  They  have  developed  out  of  previous  types 
of  organizations  and  while  their  present  activities  are  not 
commonly  engaged  in  by  European  chambers,  many  of  their 
most  prominent  features  are  directly  drawn  from  organizations 
of  quite  a  different  character  either  in  this  country  or  in  Europe. 
For  this  reason  it  may  be  well  to  look  for  a  moment  or  two 
at  some  of  the  characteristic  features  of  some  of  the  European 
tvpes  of  organizations  of  business  men.  It  is  largely  from 
these  that  the  forms  of  the  American  organization  came. 

The  French  Originals  of  the  Chamber  of  Commerce 

The  chamber  of  commerce  in  anything  like  its  modern  form 
apparently  was  of  French  origin.  In  the  reign  of  Henry  IV.  in 
the  latter  part  of  the  10th  Centuiy,  there  was  established  what 
was  known  as  the  Superior  Chamber  of  Commerce  of  France. 
This  was  of  the  nature  of  a  temporary  official  commission  and 

15 


ie,r,.c.c      ;    /    '   %  INTRODUCTION.  / 

apparently  had  merely  investigatory  powers  although  its  field 
of  operation  covered  both  commerce  and  manufacturers  and 
geographically  it  was  supposed  to  investigate  in  foreign 
countries  as  well  as  in  France.  About  the  same  time  the  mer- 
chants of  the  City  of  Marseilles  formed  an  independent  volun- 
tary organization  for  representing  the  commercial  interests  of 
their  port.  The  purjjoses  of  this  organization  evidently  were 
very  closely  akin  to  what  afterwards  developed  into  the  chamber 
of  commerce  as  it  is  now  known  in  France.  Under  Louis  XIII, 
in  the  year  1G16,  the  General  Chamber  of  Commerce  of  France 
was  established  as  a  permanent  organization  under  the  direc- 
tion of  Richelieu.  The  powers  of  this  body  were  expanded  in 
1664  by  Colbert  and  later  in  1700.  With  this  last  expansion  of 
the  General  Council  of  Commerce  there  also  grew  up  local 
chambers  of  commerce  in  eleven  important  commercial  centers 
in  France,  all  of  them  being  established  during  the  first  few 
years  of  the  18th  Century. 

These  chambers  of  commerce  were  all  temporarily  abol- 
ished, Avith  all  other  corporations,  by  the  Decree  of  1791.  But 
shortly  afterwards  twenty-two  organizations,  based  on  the  old 
plan,  were  formed  in  the  principal  cities  of  France.  These  have 
continued  to  exist  in  approximately  the  same  form  up  to  the 
present  time  although  they  were  considerably  modified  by  sub- 
sequent laws  in  1806,  1820,  1832,  1851  and  1908. 

In  brief,  the  French  chambers  of  commerce  are  small 
bodies  Avith  not  less  than  nine  nor  more  than  twenty -one  mem- 
bers, with  the  exception  of  the  Paris  Chamber  of  Commerce 
which  has  forty  members.  These  members  as  a  rule  are  chosen 
by  the  merchants  of  the  community,  some  of  them  voting  as 
individuals,  while  others  vote  by  trades.  At  present  there  are 
one  hundred  and  forty-three  chambers  of  commerce  in  France 
and  forty-four  organizations  knoAvn  as  consulting  chambers  of 
arts  and  manufacturers. 

Generally  speaking,  it  is  the  task  of  these  small  elected 
committees  of  the  merchants  of  the  various  cities  to  supervise 
the  public  aspects  of  commercial  activities  in  their  vicinity. 
Wherever  there  are  stock  or  produce  exchanges  the  chambers  of 
commerce  have  charge  of  them.  They  also  issue  export  certifi- 
cates, credentials  for  commercial  travelers  and  prepare  lists 
of  produce  prices  which  are  issued  by  the  organizations.  To  a 
certain  extent  the  maritime  laws  and  regulations  in  the  more 


INTRODUCTION.  17 

important  ports  are  administered  by.  these  organizations. 
Chambers  of  commerce  moreover  may  be  granted  concessions 
for  carrying  out  public  works  such  as  the  construction  of  mari- 
time ports,  docks,  and  inland  waterways  and  similar  enter- 
prises. Among  the  lines  of  activity  undertaken  by  the  French 
chambers  are  the  operation  of  all  public  warehouses,  the  opera- 
tion and  control  of  bonded  warehouses,  the  operation  of  condi- 
tioning houses  in  the  textile  trade,  and  conducting  of  testing 
stations  for  arms  and  ammunition,  the  loading  and  discharging 
of  maritime  freights,  the  maintenance  and  conduct  of  commer- 
cial high  schools,  the  operation  of  public  libraries  and  reading 
rooms,  supervising  or  in  some  cases  the  actual  conducting  of 
telephone  service,  while  a  few  operate  commercial  museums. 

The  regular  form  of  organization  for  the  French  chamber 
includes  a  president,  one  or  two  vice-presidents,  a  secretary 
and  treasurer.  Also  there  is  ordinarily  a  salaried  business  sec- 
retary and  a  salaried  staff  of  clerks.  Usually  the  larger  cham- 
bers meet  twice  a  month  although  the  smaller  ones  meet  less 
frequently.  The  local  chambers  always  have  free  access  to  the 
ministers  of  the  government  without  intermediaries  and  they 
are  given,  by  the  laws  creating  them,  a  semi-official  standing 
which  makes  them  useful  in  an  advisory  capacity  in  relation  to 
the  central  government  at  Paris. 

In  supervising  the  work  of  the  chambers  the  Minister  of 
Commerce  is  assisted  by  a  committee  known  as  the  Superior 
Council  of  Commerce  and  Industry  consisting  of  two  sections  of 
thirty  members  each.  Thirty-four  of  the  members  are  appointed 
from  among  the  presidents  of  the  chambers  of  commerce  while 
the  remaining  twenty-six  are  senators.  This  body  is  consulted 
freely  by  the  government  on  all  matters  in  which  the  com- 
mercial relations  of  the  country  come  into  contact  with  the 
government,  such  as  in  the  construction  of  the  tariff,  and  other 
commercial  legislation,  in  the. drafting  of  commercial  treaties 
and  in  the  drafting  of  laws  concerning  emigration,  coloniza- 
tion, and  kindred  subjects.  There  is  a  permanent  consultative 
committee  of  this  larger  body  which  is  virtually  on  call  at  any 
time. 

The  French  type  of  chamber  is  thus  apparently  a  sort  of 
executive  committee  elected  by  the  merchants  of  the  commu- 
nity having  supervision  over  some  of  the  important  commercial 
activities  of  the  communitv.     It  also  has  direct  contact  with 


18  INTRODUCTION. 

the  central  government  by  means  of  the  organization  made 
up  partly  of  chambers  of  commerce  presidents  and  partly  of 
senators. 

Two  Types  of  Organization  in  Switzerland 

The  French  type  of  organization  has  been  quite  closely 
copied  in  Switzerland  although  the  organizations  in  Switzer- 
land have  drawn  some  of  their  characteristics  from  the  Guilds 
Merchant  of  former  times.  Some  of  the  SavIss  organizations 
which  formerly  existed,  however,  were  completely  reorganized 
in  the  early  part  of  the  19th  Century  and  these  reorganiza- 
tions Avere  closely  modelled  on  the  French  system. 

There  are  to  be  found  in  Switzerland  two  distinct  classes 
of  organizations,  those  that  are  entirely  independent  and  those 
that  are  organized  under  state  auspices.  The  independent  or- 
ganizations are  more  like  the  English  voluntary  type  of  or- 
ganization and  are  of  a  more  strictly  unofficial  character  than 
are  those  under  state  auspices.  There  are  seven  of  those  or- 
ganizations, located  at  the  principal  commercial  centers  of 
Switzerland,  which  are  directly  descended  from  the  old  com- 
mercial directorates  or  similar  organizations  which  existed  be- 
fore the  general  introduction  of  the  French  system.  These  or- 
ganizations are  permitted  to  charge  fees  for  legalizing  certain 
classes  of  certificates  and  some  of  them  are  granted  subsidies 
by  the  cantonal  governments  in  return  for  expert  advice  on 
economic  matters. 

There  is  a  central  chamber  of  commerce  known  as  the 
Swiss  Chamber  of  Commerce  which  receives  a  subsidy  from  the 
central  government.  This  has  a  total  of  fifteen  members,  has 
its  headquarters  in  Zurich,  and  its  main  service  is  to  give  ad- 
vice when  required. 

The  official  chambers  of  commerce  in  Switzerland  are 
three  in  number  and  they  are  mainly  concerned  with  the  con- 
duct of  the  trades  or  businesses  which  are  most  conspicuous 
in  the  regions  Avhere  they  are  located.  The  cantonal  chamber 
at  Berne  for  example  has  three  sections,  one  for  commerce  and 
industry,  another  for  crafts  and  the  trades,  and  a  third  for  the 
watch  industry. 

The  Swiss  commercial  and  industrial  organization  is  a 
federation  composed  of  sixty-two  organizations  and  the  Swiss 
Chamber  of  Commerce  is  an  executive  committee  of  this  body. 

An  important  feature  of  the  work  of  the  commercial  or- 


INTRODUCTION.  ly 

giinizations  of  Switzerland  is  the  maintenance  of  continuation 
schools  of  applied  design.  A  school  of  this  sort,  for  example, 
at  Saint  Gall  is  operateil  by  the  chamber  of  commerce.  The 
Saint  Gall  Chamber  also  operates  a  savings  bank,  and  other 
institutions  for  the  benefit  of  employees  of  local  factories. 

German  Official  Chambers  of  Commerce 

In  Germany  it  is  dilt'icult  to  draw  a  line  between  the  com- 
mercial and  industrial  organizations.  The  three  olticial  desig- 
nations employed  with  reference  to  organizations  of  this  kind 
are  (1)  the  Fachverband,  which  is  a  group  of  manufacturers 
or  producers  in  any  one  trade  or  group  of  trades,  (2)  the 
Zweckverband,  which  is  an  organization  of  manufacturers  or 
merchants  for  the  attainment  of  definite  ends  as  for  instance 
discussion  of  the  tariff  or  important  commercial  treaties,  and 
(3)  the  Zentralverband,  an  association  of  commercial  organiza- 
tions of  national  scope. 

Chambers  of  commerce  exist  in  all  German  states  with  the 
exception  of  three  of  the  small  principalities.  In  all  there  are 
something  like  150  organizations  in  Germany,  90  in  Prussia, 
eight  in  Bavaria,  eight  in  Oldenburg,  nine  in  Posen,  five  in 
Saxon}^,  seven  in  Hesse,  and  from  one  to  four  in  various  other 
political  divisions  of  the  country. 

Most  of  the  German  chamber's  of  commerce  are  official 
institutions,  although  they  show  quite  a  little  variation  in  the 
details  of  their  organization.  Most  of  the  chambers  of  com- 
merce of  Germany  are  modelled  on  the  French  type  of  organi- 
zation. In  Prussia,  for  example,  the  oldest  organizations  were 
those  in  the  Rhenish  province,  ceded  to  France  in  1801.  In 
those  regions  chambers  of  commerce  were  established  in 
Cologne,  Crefeld  and  Treves  during  the  first  five  years  of  the 
19th  Century.  A  number  of  Prussian  chambers  were  formed 
from  1820  to  1825  under  the  name  of  merchants'  organizations. 
This  is  true  of  some  of  the  large  organizations  in  the  Empire. 
There  was  another  period  of  activity  from  1830  to  1848  when 
numerous  chambers  were  created.  And  following  the  War  of 
1870  new  regulations  governing  these  bodies  were  passed  and 
many  of  the  chambers  were  reorganized. 

Generally  speaking  the  German  organizations  are  similar 
to  those  already  described  in  France  although  some  of  them 
collect  trade  taxes.    In  some  instances  a  surtax  may  be  levied 


20  INTRODUCTION. 

for  the  needs  of  the  chamber  of  commerce,  these  taxes  being 
levied  by  the  municipal  and  district  authorities  at  the  request 
of  the  chamber  of  commerce. 

Voluntary  Chambers  in  England 
The  British  chambers  of  commerce  are  entirely  voluntary 
organizations.  Unlike  the  organizations  on  the  continent,  the 
chambers  of  commerce  in  the  United  Kingdom  operate  with 
scarcely  any  government  regulation  or  restriction.  Almost  any 
business  man  in  the  community  is  entitled  to  become  a  mem- 
ber of  a  chamber  of  commerce  by  placing  his  name  upon  the 
waiting  list  Avhich  is  passed  upon  by  a  special  committee,  and 
in  practically  every  instance  membership  is  purely  voluntary. 
Tlie  oldest  organization  in  the  United  Kingdom  dates  back  to 
about  the  third  quarter  of  the  18th  Century,  and  the  London 
Chamber  of  Commerce,  one  of  the  largest  of  all,  was  not  estab- 
lished until  1881.  There  are  in  all  about  125  organizations  of 
this  kind  in  the  United  Kingdom  and  in  most  cases  they  are 
not  particularly  important  or  influential  bodies,  although  in 
the  large  towns  they  have  considerable  influence. 

The  Origin  and  Works  of  American  Chambers  of  Commerce 

The  American  organizations  are  more  nearly  like  those  of 
England  than  any  of  the  continental  bodies.  The  Chamber  of 
Commerce  of  the  City  of  New  York,  in  fact,  dates  its  charter 
back  to  King  George  and  may  be  regarded  as  the  connecting 
link  between  the  British  and  American  types  of  chamber  of 
commerce. 

The  chamber  of  commerce  as  it  exists  today  in  the  United 
8tates  is  derived  from  two  seijarate  sources.  The  first  of  these 
was  the  old  board  of  trade  established  in  many  of  the  important 
American  cities  for  the  purpose  of  supervising  trading  activi- 
ties of  one  kind  or  another. 

The  most  common  form  w^as  the  board  of  trade  operating 
the  produce  or  grain  exchange.  Notable  among  these  is  the 
Chicago  Board  of  Trade,  Avhich,  while  its  by-laAvs  provide  for  a 
Tvide  variety  of  activities,  is  most  commonly  known  as  the  super- 
visor of  the  chief  future-trading  board  in  the  American  grain 
trade.  Trading  bodies  of  this  kind  exist  in  Baltimore,  Boston, 
Minneapolis,  Milwaukee,  St.  Louis,  Cincinnati,  and  elsewhere. 
In  some  instances  they  still  continue  their  separate  existence 


INTRODUCTION.  21 

as  trading  bodies  pure  and  simple.  Still  others  of  them  have 
been  merged  \\'ith  organizations  having  a  wider  Held  of  activity. 
In  one  case  after  another  these  organizations,  starting  primarily 
as  supervisors  of  trade,  found  themselves  drawn  into  the  con- 
sideration of  commercial  problems  of  a  wider  character;  and 
finally  they  were  confronted  w^ith  the  necessity  for  attacking 
more  or  less  purely  civic  problems.  In  this  way  what  started 
out  to  be  a  strictly  trading  body  found  itself  sooner  or  later 
taking  on  civic  activities  involving  the  development  of  a  con- 
structive community  program. 

The  other  type  of  organization  common  in  this  country 
was  the  taxpayers'  organization  of  citizens  which  originally 
began  with  the  idea  of  protecting  the  business  men  of  the  city 
against  unduly  aggressive  activities  on  the  part  of  municipal 
authorities,  or  for  protection  against  some  other  immediate  or 
remote  abuse.  Many  of  these  sooner  or  later  developed  into 
Avhat  w^ere  known  as  "boosting"  organizations  which,  particu- 
larly in  the  middle  west,  assumed  the  function  of  advertising 
the  merits  of  the  community  in  all  material  things.  Activity  in 
soliciting  industries  to  relocate  in  their  cities  became  one  of 
the  common  lines  of  work  for  organizations  of  this  kind,  and 
this  or  some  other  similar  undertaking  soon  brought  these  en- 
thusiasts to  see  that,  if  their  community  were  to  be  pushed  in  its 
industrial  development  or  commercial  growth  as  fast  as  they 
sought  to  push  it,  it  must  have  substantial  ability  to  justify  the 
claim  made  for  it.  By  this  process  this  type  of  organization 
also  found  itself  facing  the  necessity  of  working  out  a  con- 
structive community  program. 

The  Modern  American  Type  of  Chamber 

About  ten  or  fifteen  years  ago  it  became  apparent  in  many 
of  the  more  aggressive  communities  of  the  country  that  these 
two  types  of  organization,  one  of  which  had  started  from  the 
strictly  commercial  side,  and  the  other  from  something  more 
nearly  like  a  citizens'  union  organization,  were  both  brought 
to  the  same  point  of  intelligent  direction  in  working  out  a  con- 
structive progi-am  for  the  community.  Out  of  this  situation 
grew  the  modern  form  of  commercial  organization  whose  ac- 
tivities under  ordinary  circumstances  are  quite  as  much  civic 
as  commercial. 

The  definition  of  this  type  of  organization  as  a  voluntary 


22  INTRODUCTION. 

organization  of  business  meyi  approaching  community  problems 
from  the  business  angle  ajjpears,  therefore,  to  suggest  with  rea- 
sonable accuracy  the  work  lying  before  the  typical  modern 
American  chamber  of  commerce. 

It  is  its  task,  in  the  interests  of  the  community  as  a  whole 
and  vicAving  the  problems  from  the  business  man's  point  of 
view,  to  take  a  definite  position  in  regard  to  public  movements 
and  tendencies.  The  essential  features  of  this  attitude  toward 
public  questions  in  the  case  of  all  organizations  of  this  type 
which  are  skillfully  conducted,  may  be  summed  up  as  follows : 
( 1 )  To  interpret  wisely  and  disinterestedly  all  movements  and 
tendencies  in  the  development  of  a  community  which  have  to  do, 
either  directly  or  indirectly,  with  the  business  interests  and  the 
civic  welfare  of  the  community.  (2)  To  prevent  the  distortion 
of  any  such  movements  by  any  other  w  ho,  either  as  selfish  propo- 
gandists,  or  from  any  selfish  motive  whatever,  undertake  to 
misuse  the  poAvers  of  the  community.  (3)  To  make  sure  that 
every  movement  or  tendency  of  the  business  life  of  the  com- 
munity moves  along  lines  of  constructive  progress. 

This  program,  while  it  may  seem  rather  general,  is  capable 
of  being  interpreted  concretely  in  the  case  of  almost  every  con- 
ceivable community  problem. 

To  summarize  the  place  of  the  American  chamber  of  com- 
merce in  the  community  as  compared  with  that  of  the  European 
organizations,  it  may  be  said  that  in  this  country  the  chamber 
of  commerce  is  the  one  body  in  the  community  responsible  to 
the  community  at  large  for  the  proper  business  interpretation 
of  civic  developments,  while  in  European  cities  the  small  com- 
mittees of  business  men  serve  as  the  official  interpreters  of  all 
commercial  developments  for  the  central  government,  rather 
than  for  the  community  at  large. 


PART  I. 

Essentials  of  Efficiency 

and 
Characteristic  Activities. 


23 


CHAPTER  I. 
Essentials  of  Efficiency 

An  Efficient  Commercial  Organization 
By  WILLIAM  GEORGE  BRUCE 

The  currents  of  activity  which  characterize  the  American 
urban  centers  of  population,  and  which  are  essential  to  their 
material  and  moral  welfare,  now  include  as  a  fixed  factor  cer- 
tain defined  promotional  efforts.  These  efforts,  while  assuming 
various  forms  and  extendini;'  into  several  directions,  have  for 
their  ultimate  object  the  achievement  of  that  efficiency,  public 
and  private,  which  makes  for  better  community  life  in  all  its 
essential  features. 

It  has  here  been  asserted  that  the  agencies  for  such  a 
result  or  condition  are  already  in  existence  and  constantly  at 
work;  that  individual  initiative  and  enterprise,  the  established 
educational  and  moral  forces,  government  and  law — are  all 
designed  to  achieve  the  ends  to  be  attained.  Granted  that  this 
be  true,  it  still  remains  for  some  generic  force  to  give  cohesion 
to  the  several  elements  and  invest  the  promotional  possibili- 
ties of  the  whole  with  momentum  and  direction. 

The  hopes  and  aspirations  of  the  community  in  this  direc- 
tion, and  the  promotional  effort  arising  out  of  them,  cannot  be 
entrusted  to  purely  private  auspices  or  to  public  authority. 
Each  travels  in  its  own  orbit.  The  local  government  is  restrict- 
ed by  law  to  certain  functions.  The  single  individual  is  ab- 
sorbed in  his  individual  pursuits  with  its  limitations  of  influ- 
ence. The  scope  then  lies  between  the  function  of  the  indi- 
vidual and  the  local  government — a  collective  effort  which 
transgresses  neither  the  power  of  one  or  the  function  of  the 
other. 

There  must  then  be  a  force  in  which  many  individuals  give 
a  part  of  their  time,  a  part  of  their  thought  and  a  part  of  their 
effort,  and  each  throw  into  the  scales  his  spare  effort  and  his 

25 


26  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

influence  with  those  of  the  others.  It  is  this  collective  influ- 
ence, this  combined  thought  and  action  which  must  be  shaped 
into  an  efficient  piece  of  machinery. 

Thus,  the  recognition  for  concerted  action  along  distinc- 
tive lines  for  the  welfare  of  an  entire  community  has  found  its 
best  expression  in  the  modern  commercial  organization. 

The  Essence  of  Promotion 

While  a  discussion  on  the  essentials  of  an  efficient  com- 
mercial organization  must  concern  itself  with  the  machinery  of 
the  siame,  it  must  bear  in  mind  the  immediate  and  ultimate 
purposes  for  which  the  same  is  constructed.  In  fact,  the  con- 
struction of  a  piece  of  machinery  must  be  governed  by  the  uses 
for  which  it  is  intended.  It  must  be  simple  in  mechanism, 
economical  in  operation  and  efficient  in  production.  The  ma- 
chine is  only  an  incident  to  the  product  and,  therefore,  merely 
the  means  to  an  end. 

A  commercial  organization  constitutes  the  machinery 
through  which  certain  results  are  to  be  achieved.  Efficiency 
is  exerted  in  the  degree  that  it  performs  a  service  expeditiously 
and  well.  The  quality  of  the  product  or  kind  of  results  to  be 
obtained  must  determine  the  size,  strength  and  character  of 
the  machinery. 

We  must  then  deal  Avith  the  results  to  be  achieved  before 
we  can  successfully  devise  the  method  and  manner  of  achieving 
them.  Wliat  are  the  end  and  essence  of  the  results  to  be  ob- 
tained? The  answer  is  embodied  in  a  few  words,  namely,  in  a 
condition  which  spells  a  progressive,  prosperous  and  patriotic 
community. 

Government  and  Commerce 

The  earlier  conception  of  a  commercial  organization  pro- 
vided for  business  promotion  only.  The  civic  idea  was  excluded 
as  irrelevant  to  its  purposes.  Then  came  the  realization  that 
there  is  a  relation  between  government  and  commerce,  that 
the  growth  of  industry  and  commerce  rests  upon  conditions  and 
environment,  which,  in  part  at  least,  are  under  governmental 
direction  or  influence. 

We  must  all  agree  that  the  relation  between  government 
and  commerce  is  an  important  one;  that  laws  and  regulations 


AN  EFFICIENT  COMMERCIAL  ORGANIZATION.  27 

may  protect  or  injure  industrial  or  commercial  pursuits,  and 
that,  therefore,  statesmanship  must  be  in  touch  with  the  course 
and  the  usage  of  business.  That  being  true,  it  also  follows 
that  there  is  a  vital  point  of  contact  between  the  commercial 
organization  and  the  local  city  administration,  the  state  ad- 
ministration and  the  national  administration.  Statesmanship 
must  not  only  be  in  touch  with  the  public  pulse,  but  it  must 
also  employ  the  judguient  of  business  on  problems  of  a  purely 
economic  character. 

The  function  of  government  is  to  protect  and  to  regulate. 
It  has  no  special  promotional  function.  But  government  re- 
quires that  stimulus  whicli  springs  from  a  wholesome  public 
sentiment.  The  commercial  organization  must  radiate  its  in- 
fluence over  a  wide  circle.  It  must  touch  government  as  well 
as  commerce;  it  must  stimulate  action,  both  promotional  and 
corrective,  in  the  direction  of  efficienc}^,  higher  standards  and 
nobler  ideals. 

Economic  and  Civic  Advancement 

The  mission  and  purpose  of  the  modern  commercial  organi- 
zation is  primarily  economic  and  civic  in  character.  All  pro- 
motional effort  in  its  field  falls  under  these  two  classifications. 
They  may  concern  themselves  with  the  commercial  and  indus- 
trial advancement  of  the  community,  or  strive  for  greater  effi- 
ciency in  local  government,  but  the  basic  purpose  of  all  effort 
is  for  material  and  social  betterment. 

The  time  Avhen  a  commercial  organization  was  recognized 
solely  as  a  promoter  of  commerce  and  trade,  or  of  transporta- 
tion and  industry,  has  gone  b}^  The  interrelation  between 
business  and  government,  between  industrialism  and  social  con- 
ditions, has  come  into  full  recognition. 

There  are  those  who  have  more  recently  come  into  the  work 
who  hold  that  in  the  last  analysis  the  sole  function  of  a  com- 
mercial organization  consists  of  the  awakening  of  a  civic  con- 
sciousness. I  combat  this  idea.  The  promotion  of  material 
advancement  is  primary  and  fundamental.  It  forms  the  basis 
of  civic  progress.  At  best,  the  economic  and  civic  efforts  must 
go  hand  in  hand.  One  contributes  to  the  advancement  of  the 
other. 

Commerce  Precedes  Culture 

It  was  not  until  the  Phoenicians  of  old  established  them 
selves  as  prosperous  traders  that  their  wonderful  art  in  shaping 


28  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

the  precious  metals  began  to  develop.  It  was  not  until  the  mer- 
chant princes  of  Venice  brought  gold  and  treasures  to  their 
shores,  that  the  art  and  poetry  of  its  people  began  to  assert 
themselves.  It  was  when  the  Hanseatic  league  brought  pros- 
perity to  the  ports  of  Germany  that  the  literary  and  scientific 
rise  of  that  country  was  assured.  It  was  during  the  Elizabethan 
period  when  the  merchant  came  into  his  own,  that  the  poetry 
and  literature  of  England  assumed  strength  and  beauty.  It 
was  then  recognized  that  trade  precedes  culture. 

Civic  progress  then  can  no  more  constitute  the  sole  aim 
and  purpose  of  commercial  organizations  than  can  economic  ad- 
vancement. The  two  are  so  closely  interlinked  that  their  pro- 
motion must  be  simultaneous  and  reciprocal. 

The  promotion  then  of  the  economic  growth  and  stability  of 
the  community  is  primary  and  leading.  All  the  higher  aims  and 
purposes  in  our  civic  and  social  life  are  predicated  upon  ma- 
terial foundations.  The  family  must  have  an  income  to  meet 
the  necessities  of  life  before  the  conveniences  and  comforts  can 
be  thought  of.  There  must  be  bread  and  butter  upon  the  kitchen 
table  before  there  can  be  a  phonograph  in  the  front  parlor. 
What  applies  to  the  individual  family,  applies  to  the  collective 
city. 

The  American  city  must  find  its  sustenance  in  trade,  com- 
merce and  industry.  Out  of  the  fruits  of  these  she  must  gain 
that  strength  which  enables  her  to  reach  out  for  higher  and 
nobler  ends.  A  forest  of  blazing  factory  chimneys,  a  row  of 
thriving  business  blocks,  a  fleet  of  laden  ships  or  a  train  of 
freight  cars  precede  the  construction  of  a  theatre,  the  estab- 
lishment of  a  zoological  garden,  the  erection  of  a  monument,  or 
the  building  of  a  fine  boulevard. 

There  must  be  enough  taxable  industrial  and  commercial 
property  before  there  can  be  any  thought  of  public  improve- 
ments. Comfortable  homes  and  their  equipment,  schools  and 
churches,  must  first  be  earned  by  somebody.  The  factory,  the 
farm,  the  office,  and  the  store  are  the  scenes  where  the  hand 
and  brain  produce  that  which  makes  possible  the  better  things 
of  life. 

The  very  complexities  of  our  commercial,  civic  and  social 
conditions  render  all  our  activities  interdependent,  one  rely- 
ing for  its  development  upon  the  character  of  the  other.     The 


AN  EFFICIENT  COMMERCIAL  ORGANIZATION.  29 

march  of  progress  must  embrace  all  lines  of  liiiman  activities 
in  order  to  complete  and  harmonize  the  efficiency  of  the  whole. 
Thus,  it  becomes  clear  that  the  modern  commercial  organi- 
zation has  a  twofold  mission  and  purpose.  It  must  promote  the 
material  advancement  simultaneously  with  j)romoting  the  civic, 
moral  and  educational  progress  of  the  community. 

Directing  Collective  Effort 

The  modern  commercial  organization  is  limited  in  its  use- 
fulness only  b}"  its  financial  ability  and  the  intellectual  powers 
of  its  executive  officers.  Its  operating  assets,  like  those  of  any 
business  enterprise,  consist  of  money  and  brains.  This  implies 
a  plan  of  organization  that  will  ensure  an  adequate  revenue  and 
elevate  into  leadership  men  of  vision,  of  judgment  and  of  ac- 
tion. The  income  must  be  commensurate  with  the  size  and  im- 
portance of  the  city.  The  executive  family  must  reflect  the 
best  type  of  citizenship. 

The  membership  must  consist  of  business  and  professional 
men  who  command  the  respect  of  the  general  public.  The  lead- 
ership must  be  entrusted  into  the  hands  of  men  who  enjoy  the 
confidence  of  the  membership.  The  actual  labors  of  the  associa- 
tion must  be  assigned  to  the  executive  offices  and  committees. 

The  efficiency  of  an  organization  rests  primarih^  upon  an 
accurate  understanding  of  what  the  city  really  is  and  what  it 
may  be ;  its  needs  and  its  possibilities,  the  opportunities  for 
progress  afforded  through  inherent  qualities,  environment  and 
geographic  location. 

Second,  in  agreeing  upon  principles  and  policies  and  in 
choosing  the  men  that  can  set  them  into  action,  focusing  public 
attention  to  desirable  accomplishment  of  certain  ends  and  pur- 
poses, and  in  crystallizing  public  sentiment  in  their  behalf. 

Essentials  of  Efficiency 

In  reducing  my  discussion  to  fixed  conclusions  I  hold  that 
an  efficient  commercial  organization  is  one  that: 

First — In  membership  and  leadei^ship  is  truly  representa- 
tive of  the  best  citizenship,  and  reflects  the  highest  impulse  and 
the  noblest  aspirations  of  the  community. 

Second — That  holds  to  principles  which  recognize  the 
fundamentals  of  truth  and  honor;  policies  which  embody  con- 
sistency, discretion  and  judiciousness;  methods  which  imply 
tact,  skill,  and  the  exercise  of  comnnm  sense. 


30  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Third — That  is  organized  as  to  a  division  of  duties  and  re- 
sponsibilities, the  assignment  of  directive  powers  and  the  es- 
tablishment of  principles  and  policies  so  as  to  ensure  the  largest 
measure  of  service. 

Fourth — That  constitutes  itself  into  a  clearing  house  for 
the  ideas,  thoughts  and  suggestions  of  its  constituency  for  the 
cominunit3^'s  welfare,  subject  them  to  a  sifting  process,  and  re- 
duce the  acceptable  and  feasible  into  form  and  action. 

Fifth — That  recognizes  expert  know  ledge  and  executive 
power  in  secretarial  service  and  stands  ready  to  compensate 
such  service  in  keeping  with  professional  service  rendered  in 
other  fields  of  activity. 

Sixth — That  has  a  complete  grasp  of  its  own  powers  and 
limitations,  an  understanding  of  the  commercial  and  industrial 
opportunities  and  the  civic  and  cultural  possibilities  of  the 
community. 

Seventh — That  appreciates  the  advantage  and  disadvantage 
of  location,  of  environment,  of  physical  characteristics;  that 
]*ecognizes  errors  and  shortcomings  in  the  economic,  civic  and 
social  life  of  the  community;  that  understands  its  traditions, 
tendencies  and  temperamental  peculiarities. 

Eighth — That,  in  the  pursuit  of  desirable  ends,  has  a  clear 
conception  of  the  possible  and  the  impossible,  of  the  obtainable 
and  the  unobtainable,  the  feasible  and  infeasible,  and  constantly 
sees  the  danger  line  of  overactivity  or  unwise  inactivity. 

Ninth — That  fearlessly  directs  and  focuses  popular  at- 
tention to  gross  public  evils,  and  the  corrective  means  to  be 
employed,  to  desirable  and  needed  improvements  to  be  made, 
or  to  advantageous  projects  to  be  realized,  and 

Tenth — That  sets  about  intelligently  and  energetically  to 
crystallize  public  sentiment  towards  the  accomplishment  and 
achievement  of  its  ends  and  purposes. 


The  Essentials  of  An  Effective  Organization 

By  JAMES  A.  McKIBBEN 

A  good  many  business  men — possibly  the  majority  of  them 
— if  they  were  asked  to  specify  just  what  you  should  do  in  order 
to  make  the  members  of  an  organization  interested  in  it,  would 
say  "make  the  organization  efficient.'-     "Do  things." 


THE  ESSENTIALS  OF  AN  EFFECTIVE  ORGANIZATION.  31 

"Efficiency"  is  the  watclnvord  of  successful  business.  The 
members  of  iin  or<»anization  can  not  be  expected  to  have  a  sus- 
tained interest  in  it  unless  they  are  proud  of  it;  and  successful 
business  men  can  not  be  proud  of  an  organization  unless  it  is 
doing  efficient  work. 

One  of  the  fundamentals  absolutely  essential  to  a  sustained 
state  of  in  teres  tedness  on  the  part  of  members  is,  I  think,  an 
efficient  organization.  But,  if  an  efficient  organization  is  one 
of  the  things  essential  to  a  live  and  continuing  interest  on  the 
part  of  members,  it  should  be  recognized  that  it  is  only  one  of 
the  essentials.  There  are  a  number  of  other  things  just  as 
fundamental. 

Other  Things  Essential 

The  primary  requisite  to  sustained  interest  seems  to  me  to 
be  a  realization  and  understanding  on  the  part  of  its  members 
of  what  the  organization  is  and  what  it  is  trying  to  do. 

"But,"  some  of  you  may  be  inclined  to  say,  "the  members 
of  course  understand  that.  That  was  explained  to  them  when 
they  were  asked  to  join,  and  they  understand  it  perfectly." 
My  experience  has  been  that  not  one  man  in  ten,  when  he 
joined  the  cliamber,  had  grasped  or  understood  the  fundamen- 
tal difference  between  a  trade  organization  and  an  organization 
such  as  most  of  us  represent,  which  is  working  for  the  ad- 
vancement of  the  commercial  and  industrial — and  perhaps,  also 
the  civic — interests  of  the  community  as  a  whole.  My  experi- 
ence has  also  been  that  after  the  management  of  an  organiza- 
tion has  done  everything  it  possibly  can  to  bring  about  an 
understanding  of  what  the  organization  really  is  and  is  try- 
ing to  do,  there  will  be  at  least  one  out  of  every  ten  who  does 
not  understand  that  it  is  not  a  trade  organization,  and  who 
never  will. 

Why  This  is  of  Importance 

And  it  is  fundamentally  important  that  your  membei*s 
should  understand  that  your  organization  is  not  a  trade  or- 
ganization. The  primary  purpose  of  a  trade  organization  is 
to  benefit  pecuniarily  the  people  engaged  in  that  trade — and  to 
do  it  quite  irrespective  of  the  effect  on  people  not  engaged  in 
that  trade.  Its  success  or  failure  is  measured  by  the  extent  to 
which  it  pushes  the  interests  of  each  individual  member,  as  a 


32  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

separate  entity  from  the  rest  of  the  community.  Not  so  in  the 
case  of  the  general  organization  working  for  the  advancement 
of  the  welfare  of  the  whole  community.  Its  path  of  duty  may 
or  may  not  coincide  with  the  path  of  duty  of  an  organization 
representing  exclusively  the  people  engaged  in  any  one  particu- 
lar trade — it  may,  in  fact,  be  that  the  thing  which  is  for  the 
benefit  of  the  business  community  as  a  whole,  and  which  it  is. 
therefore,  the  duty  of  the  general  representative  organization 
to  work  for,  is  against  the  interests  of  some  one  trade. 

The  motive,  the  field  of  work,  the  deciding  factors,  the 
methods,  of  the  two  are  entirely  different;  and  the  point  of 
view,  the  attitude  of  mind,  the  test  by  which  your  member  will 
in  his  owTi  mind  decide  whether  you  are  or  are  not  an  efficient 
organization,  and  the  amount  of  interest  which  he  can  be  in- 
duced to  take  in  work  to  promote  the  prosperity  of  the  whole 
community,  will  be  entirely  different,  depending  upon  whether 
he  has  the  trade  organization  point  of  view  or  the  other. 

Now,  the  natural  point  of  view  of  a  business  man  is  the 
trade  organization  point  of  view;  and  unless  he  understands 
clearly  and  definitely  the  real  field  of  work  and  primary  pur- 
pose of  your  organization  he  will  measure  its  success  or  failure 
by  the  trade  organization  yardstick — and  if  your  members  use 
that  yardstick,  you  are  pretty  certain  to  have  a  lot  of  dissatis- 
fied, disgruntled  members. 

And  their  inclination  to  take  the  trade  organization  point 
of  view  is  not  in  most  cases,  I  believe,  due  so  much  to  a  lack  of 
public  spirit  as  to  lack  of  appreciation  of  the  fact  that  you  are 
not  doing  business  on  the  trade  organization  plan. 

An  Illustration 

Perhaps  I  can  best  make  clear  the  essential  difference  be- 
tween the  two,  and  the  effect  of  getting  a  real  understanding 
of  the  difference,  by  relating  an  incident  which  actually  hap- 
pened in  the  early  days  of  the  reorganization  of  the  Boston 
Chamber. 

One  day  a  rather  prominent  merchant  came  to  see  the 
president,  and  said:  "I  have  been  asked  to  join  the  Boston 
Chamber  of  Commerce,  and  I  thought  I  would  come  and  see 
you  about  it.  What  I  want  to  know  is  this :  I  have  been  try- 
ing for  two  years  to  get  the  pavement  in  front  of  my  store 


THE  ESSENTIALS  OF  AN  EE'FECTIVE  ORGANIZATION.  33 

changed.    If  I  join  the  chamber,  will  the  chainl>er  help  me  to 
get  it  changed  ?'' 

Now,  his  proposition  presented  in  definite,  concrete  form, 
the  trade  organization  point  of  view,  which  is  that  the  sum 
total  of  the  duty  of  the  organization  is  to  help  any  particular 
member  to  get  anything  done  which  he  thinks  will  benefit  him 
pecuniarily  in  his  business.  I  had  never  heard  that  point  of 
view  stated  in  such  a  clear-cut,  straight-out-from-the-shoulder 
way  as  that,  and  I  listened  with  a  good  deal  of  interest  to  see 
what  the  answer  would  l3e. 


"Well,  Mr.  F ,"  the  President  said,  in  answer, 

"frankly,  I  don't  know  whether  we  will  or  not.  If  you  think 
the  pavement  in  front  of  your  store  ought  to  be  changed,  and 
will  write  me  a  letter  about  it,  I  will  see  what  our  committee 
on  municipal  affairs  thinks  about  it;  but  its  answer  will  de- 
pend entirely  upon  whether  it  would  be  for  the  benefit  of  the 
people  of  Boston  as  a  whole  to  have  that  pavement  changed. 
In  other  words,  if  it  is  for  the  benefit  of  the  city  as  a  whole 
that  the  pavement  be  clianged,  we  will  try  to  get  it  changed: 
and,  if  it  is  for  the  benefit  of  the  city  as  a  whole  that  it  should 
stay  as  it  is,  Ave  will  oppose  its  being  changed ;  and,  as  a  matter 
of  fact,  we  will  favor  its  being  changed  or  oppose  its  being 
changed  just  as  quickly  whether  you  are  or  are  not  a  member 
of  the  chamber.  What  you  suggest  is  not  what  we  are  in  the 
business  for." 

And  then  he  spent  two  or  three  minutes  telling  his  caller 
the  kind  of  things  which  the  chamber  was  formed  to  promote, 
and  ended  by  saying  that  it  was  evident  that  in  working  for  the 
kind  of  things  he  had  enumerated,  the  organization  would  be 
working  to  promote  the  interests  of  the  great  majority  of  busi- 
ness men;  that  if  by  working  for  these  things  they  were  pro- 
moting without  a  single  exception  the  private  interests  of  each 
individual  member  of  the  chamber,  they  would  be  very  glad  of 
that  fact;  and  that  if  by  working  for  the  things  which  he  had 
named  they  happened  to  be  working  for  something  which  was 
against  the  private  interests  of  some  individual  member,  they 
regretted  that  fact — but  that  it  was  clearly  the  duty  of  the 
organization  to  go  ahead,  regardless  of  that,  and  work  just  as 
hard  a^  possible  to  get  it  done.  That  conversation  gives  you  a 
clear-cut  statement  of  the  two  points  of  view. 


34  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

And  what  was  the  effect  on  the  apparent^  selfish,  grasping, 
hardheaded  business  man,  who  came  in  so  thoroughly  imbued 
with  the  trade  organization  point  of  view?  Did  he  get  angry? 
Not  in  the  slightest.  Bringing  his  fist  down  on  the  desk,  he 
said:  ^'By  George,  that's  right.  I  never  understood  the  idea 
before.  I  will  gladly  join  and  help.''  He  sat  down  and  signed 
an  application.  But  that  was  not  all.  Tliat  man  had  seen  a 
new  light — he  had  been  converted — and  he  went  out  and,  with- 
out being  asked  by  anybody  to  do  it,  secured  and  sent  in  five 
applications  of  other  men  within  a  week. 


The  Commercial  Organization  in  the  Town 
or  Small  City 

By  J.  P.  HARDY 

For  the  purpose  of  determining  wherein  the  problems  of 
small  cities  vary  from  those  of  larger  communities,  and  to  what 
degree  size  accentuates  this  difference,  I  have  divided  the  cities 
into  three  groups  as  follows:  Cities  of  200,000  and  over  are 
designated  as  Class  A.  Cities  of  not  less  than  75,000  nor  more 
than  125,000  as  Class  B.  Cities  of  less  than  75,000  as  Class  C. 
Five  cities  in  Class  A  with  an  average  population  of  360,000. 
Five  in  Class  B  with  an  average  of  98,000,  and  thirty-seven  in 
Class  C  with  an  average  of  30,000  have  furnished  the  informa- 
tion on  which  this  paper  is  constructed.  Before  entering  on  a 
general  discussion  of  the  subject  it  will,  I  believe,  be  both  in- 
teresting and  instructive  to  compile  and  analyze  the  answers 
received  to  the  questions. 

Best  or  Most  Unique  Achievement 

Question  No.  1 :  What  is  your  best  or  most  unique  achievement  for  the 
past  five  years? 

The  answers  to  this  question  varied  to  such  an  extent  as  to  mal^e  it 
necessary  to  tabulate  them  before  attempting  their  analysis. 

Answer  Class  A     Class  B     Class  C 

Improvement  of  City  government  12  9 

Securing  New  Industries  10 

Adjusting  of  Transiportation  rates  1  5 

Campaign  for  Membership  ,  1 

Organized  Retail   Merchants  1  1 

Note: — ^l^'his  paper  is  based  upon  a  questionaire  designed  to  reveal  char- 
acteristic small  town  activities  and  the  expressions  of  the  small  town  secre- 
taries. 


THE  COMMERCIAL  OROANIZATION  IN  THE  SMALL  CITY.         35 

Answer  Class  A    Class  B     Class  C 

Organized     Agricultural  Development  1                3 

Built  Public  Buildings  113 

Adjustment  of  Insurance  rates  1 

Trade  Extension  Tour  1                1 
Promotion  of  Chautauqua  Exposition  of 

Industrial  Show  5 

Civic  Improvements  0 

Elimination  Fake  Advertising  1 

Improvement  of  Service  of  Public  Service  Corp  1 

Securing  Conventions  1 

Re-organization  of  Chamber  1                C 

Parks  and  Playgrounds  5 

Good  Roads  2 

Charities  1                                2 

Extension  of  Transportation  facilities  1                                3 

Educational  Promotion  1 

Remembering  that  one  and  one  only  achievement  was  asked 
for,  it  is  interesting  to  note  that  in  answers  received  from  forty- 
seven  cities,  twenty  distinctive  achievements  are  recorded  as 
worthy  of  note.  It  is  fair  to  presume  that  during  our  five- 
year  period,  embodied  in  the  question,  many  other  notable 
results  were  achieved  hy  all  the  cities  Avho  record  answers  to 
this  question.  Some  index,  therefore,  of  the  ambition  and 
purposes  of  cities  in  general  may  be  gleaned  from  these  an- 
swers. It  will  be  noted  that  the  size  of  the  city  bears  evidently 
no  relationship  to  the  importance  it  attaches  to  any  one  of  the 
accomplishments  recorded ;  for  those  noted  by  Cities  of  Classes 
A  and  B  are  also  recorded  by  those  of  Class  C. 

Dividing  the  answers  received  into  three  subdivisions, 
namely.  Industrial,  Commercial  and  Civic,  we  find  that  in  the 
small  cities: 

Twenty -one  relate  to  Industrial  Achievement. 

Four  relate  to  Commercial  Achievement. 

Forty  relate  to  Civic  Achievement. 

AVhile  one  achievement  only  was  asked,  some  cities  record- 
ed two  or  more,  which  will  account  for  the  fact  that  sixty-five 
answers  are  returned  by  thirty-seven  cities. 

Kinds  of  Promotion  Emphasized 
Question  2 :    What  kind  of  promotion  do  you  emphasize  most? 
Industrial  and  Commercial  only 
Industrial  and  Civic  only 
Commercial  and  Civic  only 

Answer  Class  A 

All  three  equally  2 

All  three  mostly  civic  2 

All  three  mostly  industrial 


2 

1 

3 

Class  B 

Class  C 

3 

14 

2 

6 

\ 

3 

36  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Class  C 

Civic  only  3 

Industrial  only  3 

Commercial  only  2 

Industrial  and  Commercial  only  2 

Industrial  and  Civic  only  1 

Commercial  and  Civic  only  3 

An  analysis  of  these  figures  indicates  that  in  all  classes  of 
cities  the  preponderance  of  effort  is  laid  on  civic  activities.  In 
the  small  cities  it  appears  that  efforts  along  one  line  only,  while 
exceptional,  are  evidently,  confined  to  cities  in  this  class  only; 
larger  cities  in  both  Classes  A  and  B  are  indicated  as  engaged 
in  all  three  forms  of  association  activities. 

A  closer  study  of  the  answers  to  this  question  shows  that 
in  small  cities  stress  is  laid  on  the  commercial  or  industrial 
phase  of  association  work,  as  they  happen  to  be  located  in  agri- 
cultural or  manufacturing  localities.  The  only  exception  to 
this  rule  being  in  those  cities  located  in  agricultural  districts, 
in  which  the  association  has  interested  itself  in  agricultural 
development;  in  such  cities  surely  they  may  be  credited  with 
industrial  as  well  as  commercial  activity  on  the  theory  that 
every  farm  is  a  factory. 

Large  Town  vs.  Small  Town  Problems 

Question  5:  What  do  you  regard  as  the  most  distinguishing  difference 
between- the  large  and  small  town  problems? 

As  this  question  calls  for  an  expression  of  opinion  and  not  of  necessity 
of  experience,  I  shall  not  tabulate  the  answers  by  classes.  So  many  and 
varied  were  the  answ^ers  that  I  have  concluded  to  quote  from  a  selection 
only,  as  follows : 

"Siz?s  of  issues  involved." 

"Problems  larger  but  not  more  numerous." 

"Benefits  more  apparent  in  smaller  towns,  making  it  easier  to  get  co- 
operation." 

"In  small  towns  men  know  one  another  so  well  that  they  often  fail  to 
harmonize." 

"Work  easier  in  large  city." 

"More  direct  service  required  in  small  city." 

"Large  cities  have  large  problems  unknown  to  small  cities ;  small  cities 
many  problems  which  large  cities  have  already  solved." 

"The  large  city  must  employ  heroic  measures  to  correct  evils  resulting 
from  lack  of  city  planning  when  they  were  small;  small  cities  must  give 
citizens  vision  enabling  them  to  prepare  for  the  big  city  of  the  future." 

"Finance  is  the  difference,  the  little  city  usually  lacks  the  big  fellorw 
who  will  Invest  and  await  results." 

"Problems  proportionately  the  same ;  finance  the  little  city's  difficulty." 

"The  attitude  of  membership  to  organization." 

"The  problems  are  largely  identical — the  machinery  for  w^orking  them 
out  naturally  more  limited  in  the  small  city." 


THE  CHAMBER  OF  COMMERCE  IN  THE  CITY  OF  "AVERAGE."    37 

"The  knocker's  knock  is  not  so  keenly  felt  in  large  cities  as  in  gmall." 

"Large  cities  place  emphasis  on  the  word  better — small  on  the  word 
Mgger." 

"In  large  cities  the  association  duties  are  specific  and  definite,  while  in 
the  small  city  they  are  variable  and  general." 

"The  small  city  problems  are  more  personal." 

"In  the  large  cities,  that  is  in  cities  of  say  a  quarter  of  a  million  i)opula- 
tion  or  more,  the  man  of  large  affairs  considers  himself  a  permanent  resident 
and  citizen  of  the  community  in  wliich  he  lives,  and,  therefore,  takes  an 
active  interest  in  the  work  cf  the  city's  commercial  organization.  Practically 
all  of  his  business  affairs  are  in  the  city  in  which  he  lives,  and  he  is,  there- 
fore, interested  in  its  commercial  progress. 

"In  the  smaller  cities,  the  same  type  of  men  do  not  give  the  same  atten- 
tion to  local  affairs  and,  as  a  result,  the  work  of  commercial  organizations  in 
such  cities  is  left  very  largely  to  men  who  cannot  be  properly  classed  as  c:m 
mercial  leaders.  This  is  due  to  some  extent,  I  believe,  to  the  fact  tliat  the 
men  of  big  affairs  in  these  smaller  cities  are  more  deeply  concerned  in  the 
affairs  of  the  larger  communities  near  at  hand  and  they  consider  the  civic 
and  commercial  problems  of  their  own  community  too  unimportant  for  their 
attention.  This  statement  is,  of  course,  not  true  with  respect  to  every  big 
man  in  Fmall  cities,  but  it  is  true  with  respect  to  many.  As  a  natural  result 
the  large  city  organization  has  the  advantage  of  the  advice  of  the  most  suc- 
cessful business  men  of  the  city ;  men  of  ripe  experience  and  sound  judgment ; 
men  w^ho  have  the  means  to  properly  finance  the  projects  which  are  determined 
to  be  for  the  best  interest  of  their  organization  or  community.  The  small 
town  organization  on  the  other  hand  is  often  obliged  to  be  content  with  the 
advice  of  men  of  limited  ability,  experience  and  means.  These  men  may 
have  large  ideas,  but  they  often  lack  the  influence  and  means  through  which 
to  translate  their  words  and  plans  into  deeds." 

The  preponderance  of  evidence  elicited  by  the  foregoing 
twelve  questions  is  to  the  effect  that  the  problems  of  the  small 
city  are  practically  the  same  as  those  of  the  large  cities — as  far 
as  concerns  the  problems  tliemselves — the  distinguishing  dif- 
ference between  the  tAvo  being,  that  in  small  cities  the  questions 
of  finance  and  service  b}^  organization  members  is  much  more 
acute. 

It  seems  to  be  pretty  well  established  that  the  efforts,  aims 
and  ambitions  of  associations  in  small  cities  cover  the  Avhole 
field  of  association  work. 

The  Chamber  of  Commerce  in  the  City  of 
'*  Average" 

By  JOSEPH  F.  LEOPOLD 

This  new  city  named  "Average"  was  founded  somewhere 
in  the  United  States  in  July,  1917,  and  has  grow^n  but  little 
since.  It  is  neither  an  industrial  nor  commercial  community, 
neither  high-brow  watering  place  nor  mining  camp,  but  a  mix- 


38  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES 

ture  of  all  in  proper  proportion  as  built  from  the  information 
furnished  by  some  seventy-seven  of  the  secretarial  craft.  The 
city  of  ^^Average"  is  just  19,000  in  population  and  its  Chamber 
of  Commerce  has  an  annual  income  of  $4,100.00,  with  a  gradu- 
ated scale  of  membership  fee  from  fl.OO  to  f 300.00  per  year 
and  about  155  members  in  good  standing. 

In  other  words,  "Average'^  is  just  the  information  from 
small  cities  over  the  whole  United  States  ranging  from  2,500 
to  50,000  population  "boiled  down."  Each  of  these  cities  re- 
quested for  information  owns  and  operates  in  some  fashion  a 
commercial  organization.  Their  organization  incomes  stretch 
from  $75.00  per  annum  to  $75,000  per  annum,  but  the  annual 
income  of  "Average"  is  only  |4,100,  showing  that  many  of  the 
cities  smaller  and  larger,  too,  than  "Average"  are  very  inade- 
quately financed. 

It  would  be  unfair  to  try  to  explain  in  detail  what  the 
small  town  organization  could  do  without  first  giving  a  mo- 
ment to  the  secretarial  wail  that  comes  practically  as  one  voice 
in  answer  to  the  questionaire  citing  the  small  town  handicaps 
as  compared  A^dth  the  city  larger  than  50,000,  which,  in  this 
statement,  is  classed  among  the  larger  communities.  Let  us 
sum  up  some  of  the  handicaps : 

First:  The  small  town  usually  has  New  York  ideas  com- 
mercially and  Pittsburgh  thoughts  industrially. 

Second :  The  income  is  small,  the  secretary  is  poorly  paid, 
with  but  scant  office  help,  if  any. 

Third :  There  are  no  bureaus  in  charge  of  expert  indus- 
trial managers,  publicity  men,  etc. 

Fourth :  The  small  town  chamber  of  commerce  members 
usually  think  in  terms  of  dollars  rather  than  units  of  com- 
munity betterment. 

Fifth :  Small  income  curtails  bulletins,  etc.,  with  resulting 
small  interest  and  consequent  poor  committee  service* 

For  the  sake  of  convenience,  and  to  skeletonize  the  mass 
of  information  received  so  that  the  results  might  be  seen  at  a 
glance,  the  accomplishments  are  listed  under  headings  in  the 
order  of  their  importance.  It  is  interesting  to  note  the  simi- 
larity of  work  and  the  lines  of  endeavor  most  generally  attempt- 
ed; also,  a  measure  of  accomplishment  in  all  lines  in  accordance 
with  the  income  of  the  organization,  rather  than  in  accordance 
with  the  population,  location  or  special  type  of  city. 


THE  CHAMBER  OF  COMMERCE  IN  THE  CITY  OF  "AVERAGE."    39 


f>. 


7. 


8. 


1.  Kctail  Worfc— 62. 

Credit  Bureas, 
Trade  Tours, 
Collection  Bureaus, 
Buy-at-home  Campaigns, 
Dollar  Days,  etc. 

2.  Industrial  Promotion — 59. 

By  Bonus,  etc. 

Helping  Local  Industries, 

Bidditig  for  New  Industries. 

3.  Civic  Improveme^it — 44. 

Health  and  Welfare  of  Public, 
Parks,  Playgrounds, 
Government, 
Public  Nursing, 
Rest    Rooms,    Comfort    Sta- 
tions. 

4.  National — 43. 

Largely  Red  Cross, 

Liberty  Bond, 

Garden  Work, 

Recruiting, 

Patriotic  Demonstrations,  etc. 

5.  Agricultural — Fartn  Agent — 42. 

Increased  Acreage, 
Better  Farming  Condition, 
Bringing  Farmer  and  City  to- 
gether. 
Picnics. 


Municipal  Improvement — 19. 
Water, 
Sewers, 
Buildings, 
Streets, 
City  Planning,  etc. 

Advertising   and   Charities   In- 
vestigation— 18. 
Classifying       Advertising  — 
Eliminating  Fraud  in  Both, 
Federation  of  Charities. 


Good  Roads — 17. 
Tvocal  Highways,  State, 
Main   Market    and    National 

Highways, 
Permanent  Road  Building, 
Auto  Club  Work, 
Signs,  etc. 

9.     Publicity  and  Conventions — 15. 
Magazine, 
Newspaper, 


Mall,  etc. 

Bulletins,  Information 

Bureau 
Conventions. 

10.  Traffic  Worfc— 13. 

Passenger  Service, 
Freight  Service, 
Freight  Rates, 
Claim  Collection, 
Auditing,  etc. 

11.  Special  Features — 12. 

Buying  Own  Home, 
Bringing   in  Outside  Attrac- 
tion, 
Musical  Programs, 
Entertainment    of    National 
Figures. 

12.  Legislative  Matters — 9. 

City, 

State, 

National. 

1.3.     PuMic  Utility  Work— 4. 
Traction  Work, 
Fights  on  Gas  and   Electric 

Rates, 
Express  Rates  and  Service  on 

All  Public  Utilities, 
Telephone  Mergers. 

14.  Surveys — 3. 

Social,  Industrial, 
Health,  Sanitary,  etc. 

15.  Employment  Bureau — 3. 

Local,  State. 

16.  Leadership — 4. 

General  Work. 

17.  Labor  Disputes — 3. 

Mine,     Factory     and     Other 
Labor  Troubles. 

18.  Financial  Work — 2. 

Raising     Large     Funds     for 
Special  Purposes. 

19.  Against  Industrial  Promotion — 

(Residence  Section.) 

20.  Oet-Together  Lunches. 

Weekly, 
Bi-monthly, 
Monthly,  Special,  etc. 


40  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

A  hurried  glance  here  shows  plainly  that  five  particular 
activities  are  uppermost  in  the  small  town  mind;  namely,  re- 
tail affairs,  industrial  promotion,  civic  improvement,  agricul- 
tural development,  and  national  matters.  Municipal  improve- 
ment, advertising  and  charities  investigation,  good  road  work, 
special  features  and  legislative  matters  follow  next  in  impor- 
tance. In  other  words,  it  shows  what  the  town  of  "Average'' 
is  doing  and  not  what  it  can  do.  ^ 

Some  of  the  organization  endeavors  are  peculiar  to  some 
particular  community,  and,  of  course,  are  not  subject  to  debate 
here.  The  question  of  labor  disputes  is  also  a  line  of  activity 
that  is  limited  to  certain  cities  and  to  the  whim  of  fate.  Traffic 
work  requires  skilled  men  and  extra  income.  It  is  desirable 
and  always  needed.  Employment  problems,  legislative  matters, 
public  utility  affairs,  various  kinds  of  surveys  and  special  finan- 
cial work  are  all  subject  to  certain  contingencies  of  necessity 
and  frequently  are  not  usable  lines  of  activity  for  a  period  of 
a  year  or  even  more. 

Leadership  is  never  enduring  and  requires  continuous  in- 
jections of  spirit  along  its  hypothetical  backbone  to  make  it 
actual,  concrete  and  visible.  Five  and  one  half  years  of  study 
on  my  part  have  made  me  believe  that  a  chamber  of  commerce 
is  conMriictivc  leadership  in  community  matters  and  that  regu- 
lar, well  outlined  and  prepared  lunch  programs  are  the  surest 
and  quickest  means  to  the  end.  With  leadership  assured,  all 
else  is  easy.  And  following  come  the  four  fundamentals  of  com- 
munity organization  activities  in  a  definite  way. 

Retail  affairs  are  not  only  important,  but  are  showing  vast 
strides  under  the  capable  leadership  of  intelligent  commercial 
organizations.  Retail  affairs  touch  usually  the  pulse  of  the 
membership  and  the  hip  pocket  of  the  most  influential  citizens 
in  the  community,  and  where  rests  his  pocket  book,  there  rests 
his  heart  and  interest.  Trade  expansion,  credit  rating,  collec- 
tive advertising,  cooperative  deliveries,  and  other  chamber  of 
commerce  stimulants  have  done  and  will  do  wonders  toward 
standardizing  retail  business. 

Interdependent  with  retail  affairs  is  industrial  develop- 
ment. Business  men  are  responsible  for  the  usual  cry  for  more 
factories  and  the  secretary,  lucky  enough  to  be  hired  in  a  town 
that  some  manufacturer  wants  to  get  into,  is  made  for  life. 
Factory  grabbing  has  been  reduced  to  a  business  basis,  but  is 


THE  CHAMBER  OF  COMMERCE  IN  THE  CITY  OF  "AVERAGE."  41 

far  from  being  solved.  Small  towns  especially  are  reaping 
harvests  in  industrial  development.  The  reason  is  plain  and 
not  to  be  denied.  The  wise  manufacturer  wishes  to  get  into 
new  territory  with  more  easily  satisfied  labor,  all  other  condi- 
tions being  considered  equal.  Small  cities  should  and  wall 
continue  to  strive  for  industrial  development.  It  shows  big  re- 
turns quickly  and  is  the  most  popular  of  all  chamber  of  com- 
merce '^results." 

"Civic  improvement''  is  the  wish  and  desire  of  all  good 
citizens.  Each  individual  and  neighborhood  suggestion  reaches 
the  wide  awake  commercial  organization.  The  result  is  or- 
ganized activity  on  a  community  need  and  a  stride  taken  in 
city  betterment.  The  growth  in  number  of  parks  and  play- 
grounds, the  better  sanitary  and  living  conditions,  public  com- 
fort stations  and  rest  rooms,  clean  city  government  and  an  in- 
creasing standard  of  citizenship  can  be  traced  in  many  small 
cities  to  the  influence  of  organized  effort  in  community  bodies. 

Agriculture  is  the  all-important  problem  of  this  and  every 
other  era  of  history.  Small  towns  are  especially  fitted  to  pro- 
mote and  develop  all  things  agricultural.  By  getting  expert 
farm  demonstrators  where  none  now^  exist,  by  preaching  the 
doctrine  of  better  farming  conditions,  by  helping  to  find  mar- 
kets for  crops  and  labor  to  harvest  them,  by  relieving  the  farm- 
er's mind  of  the  bogey  that  all  urban  dwellers  are  crooks  and 
instilling  a  feeling  of  dependence  in  the  agriculturalist — much 
has  been  accomplished  for  the  farm  and  farmer,  and  the  end 
is  not  yet.  Most  of  the  credit  is  due  the  small  town  and  much 
to  the  small  town  chamber  of  commerce. 

Such  w^ork  is  the  work  in  the  small  town.  Such  is  the  ac- 
tivity of  "Average."  It  is  good,  but  not  good  enough.  We 
need  more  money  to  spend  and  more  for  full  time,  trained  sec- 
retarial executives.  We  can't  blow^  hot  and  cold.  We  can't 
practice  law  and  run  a  chamber  of  commerce.  The  secretary 
of  "Average"  is  only  about  half-twined.  He's  still  part  in- 
surance man,  laTN^er  and  newspaper  man.  Yet  he  has  done 
wonders. 


CHAPTER  11. 
The  Relations  Between  Civics  and  Commerce 

By  O.  B.  TOWNE 

Text  books  on  civil  government  define  civics  as  applying 
to  those  laws,  methods  and  systems  which  administer  the  affairs 
of  government.  In  a  more  technical  sense  the  definition  refers 
to  the  governmental  and  judicial  functions  of  cities.  Usage, 
however,  has  measurably  broadened  the  meaning  of  the  term, 
especially  since  the  development  of  the  commercial  organization 
idea.  Dictionaries  of  standard  merit  accept  the  broader  inter- 
pretation, and  tlie  definition  now  includes  altruistic  and  wel- 
fare work  and  the  humanizing  of  commerce,  as  well  as  civil 
government. 

We  accept  the  theory-  of  the  definition,  but  in  meeting  the 
civic  and  commercial  requirements  of  the  day,  we  find  actual 
limitations  and  danger  lines  which  puzzle  even  the  most  ana- 
lytical mind.  Where  does  civic  work  leave  off  and  commercial 
work  begin?  Where  does  commercial  work  leave  off  and  civic 
work  begin?  Where  does  civic  work  leave  off  and  politics 
begin?  Is  there  benefit  accruing  to  the  others  when  emphasis 
is  placed  on  any  one  of  the  three?  What  are  the  opinions  of 
secretaries  and  other  business  and  professional  men,  who  have 
been  long  in  the  field?    What  are  the  facts? 

A  city  reflects  the  ideals  of  its  citizens.  This  is  true  in 
commerce  as  well  as  in  civics,  although  it  will  be  more  appar- 
ent in  civics.  The  standards  of  community  life  are  boldly  im- 
printed on  every  department  of  community  activity. 

It  is  true  that  many  communities  have  developed  and 
grown  rich  without  paying  the  least  attention  to  civics.  But 
a  community  without  civic  develojjment  remains  at  a  stand- 
still and  commerce  will  eventually  blight,  if  not  decay.  Com- 
merce may  make  civic  development  possible  in  a  pronounced 
degree,  but  civics  in  return  makes  commerce  human  instead 
of  mechanical,  thus  making  permanent  commercial   progress 

possible. 

42 


THE  RELATIONS  BETWEEN  CIVICS  AND  COMMERCE.  43 

In  speaking  of  commerce  we  have  three  things  in  mind. 
First,  manufacturing;  Second,  distribution;  Third,  community 
values. 

The  hardest  thing  in  commerce  is  to  find  the  man  who  can 
most  successfully  manage  the  affairs  of  industry.  But,  there 
are  those  who  can.  Their  experiences  in  civics  are  interesting 
in  the  extreme.  They  have  learned  that  it  is  commercially  profit- 
able to  keep  machinery  well  repaired  and  protected,  rather  than 
to  neglect  it  and  when  it  thus  becomes  useless,  replace  it  with 
new.  They  have  also  learned  that  it  is  commercially  profitable 
to  protect  the  factory  employee,  to  keep  the  quality  of  his  ef- 
ficiency at  a  high  degree,  rather  than  to  drive  him  to  the  break- 
ing point  and  then  replace  him  with  the  untried  and  the  un- 
trained. But  it  takes  a  man  wdth  a  mind  and  spirit  tuned  to 
the  civic  idea,  to  see  this  and  to  profit  commercially  thereby. 

It  has  proved  true  that  an  employee  who  is  well  fed,  who 
lives  in  decent  sanitary  surroundings,  with  the  beautiful  in 
nature  and  art  to  encourage  and  inspire  him,  will  turn  out 
more  perfect  Avork,  more  of  it  and  with  less  wear,  tear  and 
waste,  than  will  an  employee,  whose  surroundings  engender 
low  ideals  of  honesty,  poor  health,  immorality,  debauchery  and 
otherwise  impaired  ability  to  render  even  fifty  per  cent  effi- 
ciency in  service. 

Important  problems  of  manufacturing  are  contentment, 
health,  clear  minds,  skill  and  efficiency  among  the  employees. 
Those  business  men  who  have  made  the  experiment  show",  by 
the  increased  output  of  their  plants,  that  there  is  net  profit  in 
emphasizing  the  civic  end  of  industry. 

In  Germany,  civic  effort  is  a  great  feature  of  community 
life.  Dusseldorf  business  men,  cooperating  with  the  city  gov- 
ernment, previous  to  1913,  contributed  $64,000  a  year  to  parks 
and  1110,500  a  year  to  theatres  and  orchestras,  in  order  that 
the  people  of  that  city  might  see  and  hear  the  best  in  music 
and  the  drama  for  their  inspiration  and  thinking,  and  not  be 
compelled  to  seek  pastime  in  cheap  beer  gardens  with  debauch- 
ing entertainments  amid  degrading  surroundings.  And  a  busi- 
ness man  of  Dusseldorf  said  in  1913,  when  speaking  of  this 
remarkable  fact,  "It  is  a  business  investment  which  yields  net 
profits  to  the  manufacturers,  and  to  industry." 

We  find  the  same  condition  true  in  Frankfort,  Munich, 
Cologne,  Hanover,  Mannheim,  Ulm  and  many  other  cities  in 


44  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

the  German  Empire,  as  well  as  in  many  cities  of  France,  Italy, 
Belgium,  Sweden,  England  and  Austria. 

In  all  the  European  cities  mentioned  great  attention  has 
been  paid  to  housing  conditions  for  the  employees,  for  the  very 
obvious  reason  of  keeping  them  in  good  health,  in  pleasant  sur- 
roundings and  in  a  contented  frame  of  mind. 

An  enlightened,  well-housed,  healthy,  and  a  mentally, 
morally  and  physically  clean  buying  public,  with  an  eye  ac- 
customed to  the  beautiful  in  nature  and  in  art,  is  going  to  buy 
better  goods,  and  do  it  more  intelligently,  than  will  a  public  of 
the  opposite  status.  Not  only  will  it  buy  better,  but  it  v/ill  buy 
more,  because  less  will  be  squandered  for  the  degrading  things 
of  life.  The  market  for  the  retailer  will,  therefore,  be  more  de- 
sirable and  more  secure.  Civics  Avill  also  mean  net  profit  to 
him. 

But  what  of  community  values?  Property  values  are  de- 
termined by  two  things — commerce  and  civics.  The  business 
location  and  business  utility  of  a  piece  of  property  determine, 
to  a  very  large  ext-ent,  its  market  value.  But  civic  improve- 
ments, such  as  jjarks,  boulevards,  schools,  civic  and  commercial 
centers,  good  fire  and  police  protection,  improved  streets,  sewer 
and  water,  gas  and  electric  lights  will  increase  the  value  of  that 
same  property,  many  times.  This  is  especially  true  of  resi- 
dence property,  for  the  elements  of  convenience  and  environ- 
ment have  greater  influence  on  the  value  of  residence  property 
than  business  property.     The  effect  in  all  instances  is  direct. 

Concerning  the  extent  to  which  a  commercial  organization 
may  legitimately  interest  itself  in  civic  affairs  and  the  danirers 
encountered  in  this  work,  a  vital  consideration  is  the  nature  of 
the  commercial  organization.  In  some  of  the  older  eastern 
cities,  the  commercial  organization  devotes  itself  almost  entire- 
ly to  commercial  matters,  to  the  exclusion  of  civics.  This  is  due, 
largely  to  the  age  of  the  cities  in  question,  together  with  the  fact 
that  the  commercial  organization  in  its  present  status  is  of 
comparatively  recent  origin.  Manj^  of  the  older  cities  of  the 
east  have  had  purely  civic  organizations  for  many  years.  These 
are  sectional,  for  a  single  civic  w^ork,  for  the  permanent  beauti- 
fication  and  maintenance  of  specific  residential  districts,  or  for 
community  wide  improvement.  The  board  of  trade,  from  which 
the  present  commercial  organization  has  sprung  in  these  same 
cities,  was  purely  a  commercial  body  and  has  not  been  tolerated 
in  the  civic  field. 


THE  RELATIONS  BETWEEN  CIVICS  AND  COMMERCE.  45 

The  dangers  to  any  voluntary  organization,  such  as  is  the 
average  commercial  body,  are  from  an  internal  rather*  than 
from  an  external  source.  Its  main  problem  is  in  keeping  its 
membership  intact  while  it  establishes  itself  in  the  community. 
Dangers  from  without  usually  serve  to  knit,  more  closely  to- 
gether, the  component  parts  of  the  organization. 

The  reason  for  and  strength  of  a  commercial  organization 
lie  in  its  ability  to  serve  the  community.  The  only  danger 
which  need  be  considered  is  that  which  impairs  this  ability. 
The  danger,  although  it  may  come  from  m,any  sources,  is  but  a 
single  danger — internal  disruption. 

A  commercial  organization  must  avoid  participation  in  re- 
ligious controversies ;  it  must  not  take  sides  in  keenly  partisan 
political  campaigns.  It  must  avoid  advocating  the  cause  or 
candidacy  of  any  individual  or  group;  using  its  influence  ex- 
clusively for  the  commercial  interest  of  an  individual  or  group 
of  business  men ;  interfering  with  or  opposing,  directly,  officials 
of  constituted  authority;  any  tendency  toward  exclusiveness ; 
technicalities;  taking  sides  in  capital  and  labor  controversies; 
taking  credit  for  the  work  of  other  organizations;  interfering 
with  or  openly  opposing  the  operations  of  old  established  civic 
bodies ;  being  impractical,  shallow  and  unprepared  in  its  civic 
promotional  work ;  allowing  politics,  religion  or  factional  in- 
terests to  creep  into  the  organization  and  influence  its  conduct 
and  the  election  of  its  officials. 

The  manner  in  which  questions  of  principle  may  bring  the 
commercial  body  too  near  the  danger  line  of  politics,  the  actual 
status  of  the  organization  in  the  community  will  be  one  factor, 
and  the  relation  of  the  principle  in  question  to  the  commercial 
and  civic  activity  of  the  body  will  be  the  other.  The  status  of 
the  organization  in  the  community  must  be  constantly  main- 
tained and  improved.  The  same  thing  is  true  regarding  the 
commercial  and  civic  activity  of  the  body. 

"Public  questions  of  principle,"  according  to  Mr.  Bowers, 
of  elamestown,  "are  the  very  elements  of  political  platforms 
upon  which  men  differ,  and  in  that  possible  difference  of  opin- 
ion lies  the  danger  to  commercial  organizations." 

William  George  Bruce  of  Milwaukee,  on  the  other  hand, 
writes:  "Political  parties  have  their  adherents;  candidates 
have  their  friends.  Both  adherents  and  friends  may  be  mem- 
bers of  the  commercial  organization.     To  exert  partisanship 


46  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

here  means  to  invade  the  field  of  practical  politics  and  the 
domain  of  opposing  political  parties  and  organizations.'' 

Questions  of  principle  touch  a  community  when  they  treat 
of  governmental  safety,  justice,  commercial  equity,  humanity 
and  posterity.  When  public  questions  become  any  less  broad 
in  their  scope  they  pass  into  the  twilight  zone  and  cease  to  be 
questions  of  principle. 

Many  differ  over  the  line  of  demarcation  between  civics  and 
politics.  To  me,  it  appears  that  the  purpose  for  which  the 
commercial  body  is  formed  has  a  great  deal  to  do  with  this 
whole  matter.  A  commercial  organization  has  as  its  general 
purpose  seiwice  along  commercial  and  civic  lines.  It  has  no 
legally  established  position  in  the  governmental  affairs  of  the 
community  and,  therefore,  may  not  trespass  on  those  grounds 
with  impunity,  except  in  the  spirit  of  service  to  commerce  and 
civics. 

The  policy  of  the  useful  commercial  organization  must  be 
constructive  in  every  sense.  To  be  constructive,  it  cannot  be 
partisan  even  in  the  slightest  degree,  for  partisanism  strikes 
at  the  one  vital  spot  in  the  organization — internal  cohesion,  and 
implies  a  destructive  policy  towards  the  tenets  of  its  oppo- 
nents. 

Mr.  Bruce  of  Milwaukee,  says,  "The  line  of  demarcation 
between  civic  activities  and  political  activities,  drawn  by  com- 
mercial bodies,  must  lie  between  ante-election  campaigning  and 
post-election  cooperation,  between  selfish  partisanship  and  un- 
selfish non-partisanship,  between  party  preferment  and  commu- 
nity progress  and  welfare." 

While  this  is  true,  it  does  not  go  far  enough.  In  the  words 
of  Lucius  Wilson  of  New  York,  "The  duty  of  the  commercial 
organization  is  to  teach  the  people  to  think."  He  did  not  say 
think  rightly.  If  he  had,  he  would  have  assumed  that  someone 
in  the  community  knew  which  was  the  right  way  to  think  and 
had  the  authority  to  dictate.  No  one  may  dictate  unless  so 
authorized  by  the  law  or  by  the  people.  No  one  is  so  authorized 
in  the,  commercial  organization. 

The  line  of  demarcation  between  wholesome  civic  activi- 
ties and  dangerous  political  controversies  lies  in  the  attitude 
and  conduct  of  the  commercial  body  itself  when  dangerous 
political  questions  are  involved.  In  wholesome  civic  activities, 
the  organization  is  seeking  to  serve  the  whole  community  along 


THE  RELATIONS  BETWEEN  CIVICS  AND  COMMERCE.  47 

the  line  of  civic  and  commercial  affairs.  If  the  organization  is 
impartially  constructive  in  the  assistance  it  renders  the  public 
to  help  that  public  solve  each  problem  on  its  merits,  it  can  go 
to  almost  any  extent  in  its  activities. 

The  phases  of  commercial  organization  work  which  come 
entirely  under  the  head  of  civics  are  numerous.  To  a  well  bal- 
anced and  wisely  governed  commercial  body  the  field  for  civic 
activity  is  very  broad.  Much  of  it,  however,  comes  under  the 
head  of  commercial  civics,  for  it  has  to  do  A\ith  those  phases  of 
governmental  and  humanitarian  effort  which  increase  or  de- 
crease the  profits  of  commerce. 

The  line  of  demarcation  between  commercial  and  civic  af- 
fairs is  not  so  difficult  to  define,  even  though  civics  has  a  great 
influence  on  commerce.  J.  P.  Hardy  of  Fargo,  believes  "it 
is  parallel  to  the  line  that  marks  the  difference  between  policy 
and  administration.''  He  gives  this  definition  with  special  ref- 
erence to  the  science  of  government.  Mr.  Bruce  of  Milwaukee, 
enlarges  the  scope  of  this  definition,  however,  when  he  writes: 
"The  line  of  demarcation  places  pay-roll  and  profit  on  one  side, 
and  the  physical  and  moral  well-being  of  the  community  on  the 
other."  INIr.  Gumm,  of  Fort  Worth,  sums  it  all  up  in  one  word. 
"Dividends.''  Mr.  Nelson  of  Bingha;mton,  says:  "Business 
Profits." 

To  my  mind  the  line  of  demarcation  may  be  found  by  de- 
termining the  direction  of  the  activity.  Is  it  toward,  or  is  it 
away  from  commerce?  If  the  direction  of  the  activity  is  toward 
commerce,  either  directly  in  trade  promotion,  increasing  divi- 
dends, transportation  of  freight  or  manufacturing,  or  indirectly 
in  the  improvement  of  streets  and  housing  conditions  and 
building  good  roads,  it  may  be  said  that  the  activity  is  purely 
commercial.  If,  on  the  other  hand,  it  is  humanitarian  welfare 
work,  and  does  not  touch  commerce  either  directly  or  indirect- 
ly in  matters  of  business,  nor  affect  commerce  even  through 
civil  authorities,  it  may  be  said  to  be  purely  civic. 

But  how  about  those  commercial  organization  activities 
which  may  not  belong  to  either  class?  There  are  exceptions  to 
all  rules,  of  course,  but  it  is  a  question  whether  the  number  is 
very  large  and  also  whether  a  detailed  analysis  of  the  ultimate 
purpose  and  effect  of  the  activity  would  not  determine  pretty 
accurately  the  exact  direction  of  it  as  regards  commerce. 

There  is  general  unanimity  of  opinion  among  secretaries 


48  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

regarding  the  dependence  of  commercial  success  and  progress 
upon  good  government,  but  the  extent  of  that  dependence  is 
variously  estimated. 

Mr.  Bruce  of  Milwaukee,  says :  ^^Good  government  means 
to  afford  that  freedom  of  action  and  that  protection  to  life  and 
property  which  enables  the  merchant,  the  manufacturer,  the 
mechanic  and  the  professional  man  each  to  perform  his  allotted 
part  of  the  world's  work.'' 

Howard  Strong  says :  "Good  government  generally  means 
an  all-around  square  deal  for  everybody.'' 

The  reason  for  government  in  the  first  place  indicates  a 
certain  degree  of  responsibility  for  the  success  and  progress  of 
business.  Governments  and  laws  are  established  primarily 
that  the  right  to  life  and  livelihood  may  be  enjoyed  in  a  reason- 
able degree  of  peace  and  security. 

The  commercial  organization  is  composed  of  volunteers 
with  a  wider  common  ground  of  understanding.  The  member- 
ship is  made  up  of  business  men  with  a  common  purpose  and, 
hence,  with  a  wide  field  of  common  interests.  This  organiza- 
tion is  not  established  by  law  for  administrative  purposes.  It 
represents  the  collective  citizen  in  thinking  out  and  promulgat- 
ing plans,  methods  and  projects  for  today  and  for  future  gen- 
erations. When  it  speaks  it  can  only  speak  in  an  advisory  ca- 
pacity, in  so  far  as  the  city  administration  is  concerned,  and 
when  it  acts  it  can  only  act  in  a  cooperative  capacity.  It  can 
only  guide,  direct  and  lead  the  people  in  their  progressive 
thinking  and  assist  them  to  co-ordinate  their  efforts  to  secure 
justice  and  equity  while  solving  the  problems  of  the  times  and 
place. 

In  discussing  the  possibility  of  the  commercial  organiza- 
tion being  drawn  into  legislative  matters  of  city,  state  and  na- 
tion, two  things  should  be  considered:  First,  who  will  specifi- 
cally set  forth  the  business  and  civic  needs  of  our  community 
as  a  whole,  if  the  commercial  body  does  not?  Second,  should 
the  general  civic  and  business  interests  of  the  community  sit 
calmly  back  and  leave  the  laws,  which  vitally  affect  their  affairs, 
to  the  judgment  of  the  legislators,  who  as  a  rule,  are  from  small 
communities,  when  in  the  halls  of  legislation,  of  city,  state  and 
nation,  private  interests,  private  institutions  and  special  or- 
ganizations are  rampant,  seeking  favors  and  special  privileges? 

Commerce  has  been  the  football  of  politics  almost  from  the 


THE  RELATIONS  BETWEEN  CIVICS  AND  COMMERCE.  49 

founding  of  the  government.  It  has  been  the  party  issue  in 
almost  every  national  campaign  for  a  century.  Few  business 
men  have  had  a  word  to  say  about  it  all.  Business  men  should 
have  something  to  say  in  the  affairs  of  the  state  and  nation. 
They  should  have  more  to  say  about  the  real  business  end  of 
the  local  government.  Commerce  and  civics,  which  every  effort 
is  being  put  forth  to  improve — should  be  heard  from,  directly, 
when  laws  of  vital  importance  to  both  are  to  be  enacted.  They 
should  be  represented  at  the  hearings  and  conferences,  but 
more  especially,  they  should  be  represented  in  the  membership 
of  the  legislative  body  itself. 

Good  civic  conditions  and  good  citizenship  advertise  a  com- 
munity. The  greatest  source  of  desirable  publicity  is  a  citizen 
who  is  in  love  with  his  city  and  has  tangible  reason  for  that 
affection.  Not  only  does  it  advertise  his  community,  but  it 
advertises  the  community  spirit  of  the  place.  It  advertises  its 
industry,  its  general  business  affairs,  its  community  life. 

There  is  one  other  consideration  on  which  too  much  em- 
phasis cannot  be  laid.  A  community,  in  w^hose  development 
special  emphasis  has  been  laid  upon  civics,  is  loyal  and  patri- 
otic to  itself,  to  the  state  and  to  the  nation.  The  very  nature 
of  the  civic  work  done  proclaims  that  fact.  There  is  tlie  ideal 
to  defend;  there  is  the  contented  home  life  to  protect;  there  is 
the  organized  whole  to  uphold.  All  these  have  their  commercial 
value.  Although  they  do  not  appear  in  figures  in  the  final 
balance  of  the  average  commercial  institution,  who  can  say 
that  there  is  in  them  any  less  commercial  value  because  of  that 
fact? 


CHAPTER  III. 
Industrial  Activities 

Industrial  Development  by  Chambers  of  Commerce 
By  GLENN  A.  BOWERS 

The  effort  of  coramercial  organizations  to  attract  indus- 
tries to  their  cities  is  almost  universal.  Three  broad  groui)s 
of  members  in  particular  concern  themselves  with  industrial 
development  activities;  retailers  who  are  interested  in  an  in- 
creased purchasing  power  of  the  city;  manufacturers  who  are 
aware  of  the  advantages  which  result  from  the  concentration 
of  a  large  number  of  industries ;  and  general  members  who  look 
to  a  larger,  more  prosperous  and  more  active  city.  Because  of 
these  interests,  commercial  bodies  have  for  many  years  made 
efforts  to  attract  new  industries  and  to  assist  in  various  ways 
industries  already  located  in  the  cities  which  they  represent. 

The  broad  policies  of  industrial  development,  unless  de- 
termined in  an  arbitrary  manner,  rest  upon  a  knowledge  of 
industrial  conditions.  To  acquire  this  knowledge,  eonimon 
practice  has  had  to  undertake  a  comprehensive  survey  of  all 
social  and  economic  factors  which  affect  industry.  Some  of  the 
points  which  it  has  been  found  profitable  to  include  in  a  survey 
of  this  kind  are  outlined  very  briefly  in  this  paper.  The  policies 
which  organizations  have  followed  may  be  put  into  two  groups: 
(1)  The  creation  of  conditions  favorable  to  industries,  both 
those  already  in  the  city  and  those  which  may  be  induced  to 
come;  and  (2)  The  offer  of  special  inducements  to  new  indus- 
tries. Offers  of  special  inducements  are  given  especial  atten- 
tion herein,  with  only  casual  mention  of  those  conditions  which 
favor  industrial  growth. 

Industrial  Surveys 

•  Industrial  facts  which  would  be  of  value  in  one  city  might 
naturally  be  unimportant  in  another.  The  detailed  outline  of  a 
survey  must,  therefore,  be  left  for  local  determination.  In 
general,  however,  an  investigation  of  this  sort  might  include 
such  subjects  as  are  listed  under  the  following  principal  groups : 

50 


INDUSTRIAL  DEVELOPMENT  BY  CHAMBERS  OF  COMMERCE.     51 

1.  Existing  industries:     Nature,  number,  output,  etc. 

2.  Market  possibilities:     Quantity  and  kind  ol*  manufactured  material 

shipped  into  vicinity,  quantity  and  kind  of  unfinished  products  and 
raw  materials  shipped  elsewhere  for  further  numuf acture ;  de- 
termination of  accessible  markets,  extent  to  which  accessible 
markets  have  been  developed,  location  of  competitors,  etc. 

3.  Raw  materials:     Cost,  length  of  haul  necessary,   kind  produced   in 

vicinity,  etc. 

4.  Transportation    facilities :      Number   of   lines,    distances   to   markets, 

rates,  traffic  bureau  organization  and  work,  terminal  facilities, 
warehouses,  means  of  transfer,  etc. 

5.  Environment :     Nature  of  industries,   efficiency  of  city  goivernment, 

character  and  supply  of  labor,  housing  conditions,  educational  in- 
stitution, etc. 

6.  Manufacturing  costs :     Power,  labor,  raw  materials,  etc. 

7.  Banking  facilities :    Number  and  size  of  banks,  nature  of  investments, 

extent  of  local  market  for  industrial  securities,  etc. 

Two  Types  of  Organization  Activity 

The  two  broad  policies  adopted  by  organizations  to  attract 
industries,  as  was  suggested  above,  apparently  turn  upon  this 
question:  "Are  your  efforts  confined  to  the  creation  of  condi- 
tions favorable  to  industries?'-  In  some  organizations,  the 
policy  is  to  confine  their  activities,  either  entirely  or  practically 
so,  to  the  creation  of  conditions  favorable  to  industries.  On 
the  other  hand,  many  organizations  have  adopted  the  policy  of 
offering  special  inducements  to  secure  new  industries.  Other 
organizations  make  no  effort  whatever  to  attract  new  indus- 
tries. 

Those  organizations  which  confine  themselves  to  the  crea- 
tion of  favorable  conditions  do  so  largely  on  the  ground  that 
industrial  gro^^i;h  depends  upon  fundamental  economic  condi- 
tions, regardless  of  special  inducements  and  artificial  condi- 
tions. Those  organizations  Avhich  offer  special  inducements 
do  so  for  one  of  tAvo  reasons:  (1)  They  believe  that  industries 
may  honestly  need  aid,  financial  or  other,  in  order  to  develop 
or  expand,  and  that  money  spent  to  aid  these  industries  will  be 
returned  indirectly  through  improved  business  conditions;  (2) 
Although  they  may  disapprove  of  the  principle  just  stated,  they 
feel  that  it  is  necessary  for  them  to  follow  the  practice  in  order 
to  compete  with  other  cities  which  give  such  inducements. 

Creation  of  Conditions  Favorable  to  Industries 

"Conditions  favorable  to  industries''  appear  to  be  corollary 
to  those  groups  given  above  in  outlining  a  general  survey.    Ac- 


52  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

tivities  aimed  at  the  creation  of  more  favorable  conditions  may, 
therefore,  be  grouped  as  follows: 

.1.     Efforts    to    diversify    industries    by    promoting    improved    local    con- 
ditions. 

2.  Improvement  of  marketing  conditions  by  advertising,  by  attracting 

trade  conventions,  by  entertainment  of  buyers  and  providing  fa- 
cilities for  display  to  buyers,  by  broadening  market  through  bet- 
ter freight  and  express  service,  etc. 

3.  Improvement    of    raw    material    conditions    by    making    possible    in- 

creased production  in  vicinity,  by  providing  adequate  storage 
space,  by  giving  attention  to  freight  rates,  etc. 

4.  Improvement  of  transportation  facilities  by  establishment  of  adequate 

traffic  bureau  service,  by  providing  adequate  terminal  facilities, 
warehouses,  good  street  conditions,  etc. 

5.  Improvement  of  civic  conditions,  housing,  schools,  entertainment,  rea- 

sonable food  prices,  efficient  management  of  physical  plant  of 
city,  etc. 

6.  Lowering  of  manufacturing  costs  by  development  of  cheap  power,  by 

providing  expert  advice  foir  managers,  by  developing  industrial 
tracts  in  convenient  relation  to  railroads  and  city,  etc. 

7.  Improvement  of  banking  facilities. 

These  are  activities  which  organizations  liave  undertaken 
in  efforts  to  improve  local  conditions.  The  list  is  by  no  means 
complete  and  is  intended  merely  to  be  suggestive. 

Offer  of  Special  Inducements  to  New  Industries 

Many  kinds  of  si)ecial  inducements  may  be  offered  to  pros 
pective  industries.     In  general,  however,  they  may  be  placed 
into  six  main  groups :    Bonuses,  cash  and  indirect ;  credit  guar- 
antees; secured  loans;  loft  buildings  for  small  industries;  and 
stock  or  bond  purchase. 

Bonuses:  Cash.  A  cash  bonus  is  merely  a  payment  of 
money  to  a  concern  in  return  for  locating  its  plant  in  the  city 
offering  the  bonus — in  other  words,  the  city  buys  the  industry 
from  which  it  expects  to  get  an  indirect  profit.  This  practice 
has  had  extensive  use  in  the  past  but  is  now  in  disfavor  in  most 
organizations. 

Bonuses :  Indirect.  The  plan  of  giving  indirect  bonuses  in 
the  form  of  free  sites,  tax  exemptions,  moving  costs,  free  rents, 
low  water  rates,  etc.,  is  the  same  in  principle  as  the  cash  bonus 
plan,  but  apparently  differs  considerably  in  application.  Free 
sites  is  the  most  popular  form  of  indirect  bonuses.  In  some 
instances  the  gift  is  made  directly  by  land  owners  or  real  estate 
operators  in  the  expectation  of  increased  values  accruing  to 
land  adjacent  to  newly  developed  areas.     Donations  of  land 


INDUSTRIAL  DEVELOPMENT  BY  CHAMBERS  OF  COMMERCE.     53 

may,  therefore,  be  more  freely  secured  than  an  outright  gift  of 
money  to  a  factory,  or  credit  endorsement  and  stock  subscrip- 
tion in  which  the  return  is  less  certain  and  the  benefits  more  re- 
mote.   Tax  exemptions  are  granted  in  but  few  cities. 

Credit  Guarcmtees.  Much  criticism  has  been  directed 
against  banks  for  their  conservative  policy  toward  industrial 
loans.  One  reason  for  this  conservatism  may  be  the  lack  of 
expert  knowledge  about  industrial  management  on  the  part  of 
bank  officials.  It  is  not  the  practice  in  this  country,  as  it  is  in 
Germany,  to  have  among  the  officers  of  a  bank  a  man  skilled 
in  industrial  affairs.  In  a  number  of  cities,  commercial  or- 
ganizations have  attempted  to  supply  this  expert  knowledge 
to  banks  and  to  offset  all  other  objections  to  industrial  loans 
by  guaranteeing  to  banks  loans  made  to  approved  industries. 
Typical  provisions  of  this  plan  are : 

1.  Subscriptions  for  specified  amounts  are  made  with  the  understanding 

that  losses  suffered  will  be  prorated  among  the  subscribers. 

2.  From  10%   to  20%   of  the  amounts  subscribed   shall   be  paid   in  to 

form  a  contingent  fund  before  tlie  plan  begins  to  operate. 

3.  Subscriptions  paid  in  shall  be  deposited  with  banks  which  agree  to 

make  loans  to  industries  upon  approval  of  duly  authorized  rep- 
resentatives of  the  subscribers. 

Secured  loans.  In  most  cases  of  credit  guaranty,  the  sub- 
scribers are  secured  to  the  extent  of  the  physical  assets  of  the 
concern  aided.  Organizations  may,  however,  extend  credit  to 
industries  direct,  with  or  without  credit.  The  results  of  a  ques- 
tionaire  here  show  that  while  some  organizations  offer  special 
inducements,  a  larger  number  grant  loans  to  industries  only 
upon  security.  A  few  organizations  grant  loans  without  se- 
curity. The  plan  is  simple  and  further  comment  is  not  neces- 
sary. 

Loft  htdldings  for  small  industries.  In  a  number  of  cities 
in  which  desirable  factory  space  is  limited,  loft  buildings  have 
been  financed  by  commercial  bodies  or  by  associations  formed 
among  their  members.  The  aim  of  these  organizations  is  to 
provide  buildings  equipped  with  modern  industrial  appliances 
for  the  use  of  small  industries  which  could  not  otherwise  ob- 
tain such  facilities.  In  many  cities,  even  antiquated  factory 
space  is  difficult  to  find.  Without  adequate  factory  space  it 
has  been  hard  to  secure  new  industries  which  could  not  afford 
to  construct  and  occupy  an  independent  plant. 

This  activitv  is  not  necessarily  a  "special  inducement." 


54  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

In  some  cases,  it  may  be  more 'properly  the  "creation  of  condi- 
tions favorable  to  industries.''  However,  the  facts  that  private 
capital  has  not  provided  such  facilities  and  that  commercial 
organizations  have  been  forced  at  times  to  finance  the  undertak- 
ing, warrant  the  mention  of  loft  building  construction  as  a 
special  inducement.  It  is  the  usual  practice  to  charge  a  reason- 
able rental  for  space  in  these  buildings,  to  cover  all  expenses 
and  yield  a  fair  rate  of  interest  on  the  investment. 

Stock  or  bond  purchase.  The  final  group  of  special  induce- 
ments includes  the  purchase  of  stocks  of  new  industries,  or  of 
established  industries  seeking  to  expand.  Some  organizations 
offer  special  inducements,  others  purchase  stocks  or  bonds  in 
concerns  which  show  promise  of  success;  some  approve  legiti- 
mate stock  issues  to  citizens  after  investigation,  others  refer 
stock  issues  to  citizens  without  approval.  Again  a  number  of 
organizations  will  have  nothing  to  do  with  stock  or  bond  propo- 
sitions but  attempt  to  se€ure  new  industries  through  other 
special  inducements  or  economic  advantages. 

The  industrial  enterprise  must  be  independent  of  the  com- 
mercial body  but  close  cooperation  may  exist  between  them.  A 
selected  group  of  men  should  be  charter  members.  "One  of  the 
fundamental  essentials  to  the  success  of  a  financing  plan  is 
that  the  unit  of  efficiency  should  be  kept  in  mind  in  selecting 
the  members."  The  following  requirements  should  be  insisted 
upon: 

1.  Members  should  be  financially  able  to  assist  in  the  underwriting  of 
enterprises  endorsed  for  promotion. 

2.  Members  should  be  prominently  identified  with  industrial  or  other 
enterprises  in  the  city. 

3.  Members  should  understand  and  be  in  full  sj-mpathy  with  the  plans 
and  purposes  of  the  company. 

4.  Members  should  be  willing  to  contribute  time  and  judgment  to  the 
investigation  of  projects  which  the  board  of  directors  approve  as  worthy. 

5.  Members  should  have  experience  in  some  field  of  activity  that  will 
enable  them  to  assist  in  determining  the  advisability  ocf  promoting  any  enter- 
prise under  investigation. 

Prior  to  investment  in  an  industry  the  board  of  directors 
shall  first  decide  whether  a  project  is  worthy  of  investigation. 
The  board  then  appoints  a  committee  of  members  especially 
qualified  to  make  the  investigation.  Members  receive  just  com- 
pensation for  their  services.  If  it  is  deemed  advisable,  expert 
services  may  be  employed  by  the  board  to  assist  the  committee. 
Incidental  to  the  work  of  the  company,  a  thorough  survey  is  to 


INDUSTRIAL  DEVELOPMENT  OF  THE  SMALL  TOWN.  55 

be  made  of  the  city  and  vicinity  to  secure  a  complete  analysis 
of  ever}'  industry,  including  full  data  as  to  its  sources  of  ma- 
terials and  its  products. 

Industrial  Development  of  the  Small  Town 

By  WM.  S.  MILLENER 

Notwithstanding  the  fact  that  many  of  the  foremost  think 
ers  in  commercial  organization  work  hold  that  commercial 
bodies  should  give  first  consideration  to  civic  improvements, 
and  less  attention  to  trying  to  secure  new  industries,  the  fact 
remains  that  the  average  commercial  organization  in  the  small 
town  still  devotes  considerable  time  and  effort  to  securing  new 
industries. 

In  order  to  learn  something  of  the  methods  and  progress 
of  other  to^ATis,  over  100  questionaires  were  sent  out.  The  data 
upon  which  this  paper  is  based  was  secured  from  the  replies 
received  from  eighty-four  secretaries,  located  in  towns  ranging 

Editor's  Note: — No  subject  which  has  come  within  the  range  ci  com- 
mercial organization  effort  has  received  greater  attention  than  that  which 
deals  with  the  securing  of  new  industries.  At  the  same  time  no  subject  with- 
in the  range  of  organization  purpose  has  undergone  greater  modifications. 

"We  want  new^  factories !"  was  the  sole  slogan  of  many  of  the  commercial 
organizations  a  decade  ago.  Many  were  organized  for  no  other  purpose,  and 
secretaries  were  employed  for  no  other  duty  than  to  secure  factories.  Their 
tenure  of  office  depended  upon  the  measure  cf  success  they  attained. 

The  offers  of  bonuses  in  the  tvay  of  sites,  buildings,  stock  subscription, 
remission  of  taxes,  etc.,  etc.,  were  of  a  most  generous  nature.  The  reaction, 
however,  set  in  when  the  failures  by  far  outnumbered  the  successes.  It  was 
tjhen  discovered,  too,  that  the  success  €f  an  industrial  enterprise  involves 
more  than  bonuses,  gifts  and  exemptions. 

It  was  learned  that  a  manufacturing  enterprise  must  take  into  considera- 
tion accessibility  to  raw  materials,  facilities  for  distribution  of  the  finished 
product,  and  an  adequate  supply  of  the  right  kind  of  labor.  And  above  all 
things,  the  business  management  must  be  capable  and  honest.  Much  money 
has  been  sunk  in  enterprises  where  one  or  more  of  the  elements  here  enumer- 
ated have  been  lacking. 

While  the  average  commercial  body  is  no  less  ambitious  to  secure  new 
industries,  it  has  become  more  circumspect  in  securing  them.  It  no  longer 
makes  factory  getting  the  sole  object  of  its  existence  or  employs  a  secretary 
solely  for  his  factory  getting  ability.  It  inventories  its  own  ecnditions  and 
environment,  measures  its  opportunities,  and  establishes  more  nearly  the  c'ass 
of  industries  that  could  thrive  within  its  borders. 

The  commercial  organization  of  today  has  also  come  to  the  realizatlcn 
that  the  first  essential  is  to  make  the  city  worth  while  as  a  place  to  live  in. 
The  schools  must  be  good,  the  streets  clean,  the  drinking  water  pure,  the 
parks  attractive,  etc.,  etc.  The  city  must  be  sanitary,  afford  recreational 
facilities  and  public  utilities  if  labor  is  to  be  attracted. 


56  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

in  population  from  10,000  to  100,000,  and  scattered  over  thirty- 
two  states.  The  average  population  of  the  towns  reporting  is 
59,252,  having  commercial  organizations  averaging  641  mem- 
bers, and  an  average  income  of  |1 4,-406.00. 

Industrial  Committee 

The  answer  to  the  question  "Do  you  have  an  industrial 
committee  to  investigate  and  negotiate  with  prospective  indus- 
tries?" indicates  that,  almost  without  exception,  these  towns 
refer  the  investigation  of  industrial  questions  to  a  standing 
committee.  Answering  the  question  "Do  you  have  a  guarantee 
fund?"  71  towns  answered  "No."  One  town  answered  "Planning 
to  have  such  a  fund.'' 

■  Williamsport  answered  "No  longer.    Guarantee  fund  aban- 
doned." 

Williamsport  was  a  pioneer  in  the  guarantee  fund  move- 
ment. When  this  plan  was  first  devised  it  was  thought  by 
many  that  at  last  a  w^ay  had  been  found  to  solve  all  of  the  prob- 
lems of  substantial  industrial  growth  of  both  established  and 
new  industries.  Since  this  plan  was  devised  in  1900  and  aban- 
doned in  1914,  after  having  been  copied  or  modified  by  a  num- 
ber of  cities,  it  may  be  best  to  briefly  refer  to  it,  and  the  reason 
for  its  abandonment. 

The  Williamsport  plan  was  essentially^  a  subscription  of 
credit  by  responsible  local  business  men.  Under  this  plan,  the 
local  banks  agreed  to  furnish  money  to  such  industries  as  might 
desire  to  negotiate  a  loan  on  the  endorsement  of  three  attorneys- 
in-fact,  representing  the  subscribers  to  the  fund.  Subscrip- 
tion contracts  to  this  fund  ran  for  a  period  of  five  years.  Copies 
of  the  contract  and  certificates  of  the  action  of  the  subscribers 
in  electing  the  attorneys-in-fact  were  filed  with  the  banks,  and 
the  attorneys  were  authorized  to  endorse  for  the  whole,  or  any 
part  of  the  fund. 

Before  such  endorsement  was  made,  applications  by  bor- 
rowing firms  for  aid  were  required  to  be  approved  by  the  direc- 
tors of  the  board  of  trade.  How^ever,  the  attorneys-in-fact  had 
the  power  to  refuse  the  endorsement,  even  when  it  had  been 
approved  by  the  directors  of  the  commercial  organization.  If, 
at  maturity,  the  applicant  failed  to  meet  the  obligation,  the 
subscribers  to  the  fund  were  supposed  to  pay  the  amount  due, 
each  subscriber  being  liable  for  a  pro  rata  share  only,  of  the 
indebtedness. 


INDUSTRIAL  DEVEI^OPMENT  OF  THE  SMAX,L  TOWN.  57 

This  guarantee  of  credit  was  conservatively  given,  and 
when  given  was  protected  by  sufficient  security,  so  that  with 
but  a  few  exceptions  there  were  no  losses.  The  few  losses  that 
were  sustained  were  paid  by  a  few  wealthy  men,  usually  mem- 
bers of  the  board  of  directors,  and  there  Avas  never  any  assess- 
ment on  all  of  the  subscril)ers  to  the  fund. 

In  this  city,  credit  was  only  extended  to  industries  that 
found  some  difficulty  in  negotiating  a-loan  from  a  bank.  The 
result  was  that  the  credit  of  any  concern  so  helped  was  material- 
ly injured,  and  it  was  more  difficult  for  it  to  secure  accommo- 
dations from  local  banks  without  the  same  sort  of  endorsement. 
Believing  that  ultimately  it  was  detrimental  rather  than  help- 
ful to  the  manufacturer  who  secured  a  loan  under  this  plan,  the 
same  was  abandoned. 

Commercial  organizations  are  business  concerns,  and  the 
same  tests  of  good  business  should  be  made  to  apply.  It  is  a 
question  of  bargain  and  sale,  securing  the  goods,  if  they  be 
needed,  at  the  best  possible  terms  for  your  city. 

The  only  way  that  a  commercial  organization  can  be  of 
assistance  to  established  industries  is  to  provide  a  business 
atmosphere  in  the  whole  community  that  will  produce  general 
conditions,  such  as  stabilizing  labor,  which,  in  turn,  will  pro- 
vide the  opportunity  for  industrial  growth,  if  the  industry  is 
well  placed  and  capably  managed. 

Small  Town  Development 

In  the  final  analysis  of  industrial  development  of  the  -small 
town,  whether  it  be  in  making  conditions  favorable  to  indus- 
tries or  in  offering  either  direct  or  indirect  special  inducements, 
the  greatest  factor  for  success  is  the  standard  of  the  human 
element  back  of  the  movement.  Every  movement  needs  its 
leader,  its  optimistic,  determined,  public-spirited  man  with  a 
vision,  who  will  give  freely  of  his  otvti  time  and  influence  others 
to  give  of  theirs,  working  for  the  good  of  all.  Such  is  the  work 
of  our  commercial  organizations,  the  building  of  men  and  inter- 
esting them  in  all  the  ramifications  of  community  betterment 
and  industrial  development. 

There  is  no  set  rule  which  can  be  laid  down  for  the  guid- 
ance of  all,  but  the  conclusions  reached  in  studying  this  ques- 
tion are: 

1.    That  it  is  unwise  to  offer  a  oasb  bonus  to  secure  the  location  of  an  in- 
dustry. 


58  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

2.  That  desirable  factory  locations  on  one  or  more  railroads  should  be  con- 
trolled, either  directly  or  indirectly,  by  the  commercial  organization,  to 
prevent  undue  land  speculation  and  the  retarding  of  normal  industrial 
growth. 

3.  That  commercial  organizations,  either  directly  or  indirectly,  should  pro- 
vide suitable  facilities  for  small  manufacturers  in  a  loft  building  or  in- 
dustrial building,  that  could  be  sub-let  at  a  reasonable  rate,  having  all  the 
conveniences  of  low  power,  shipping  facilities,  etc. 

4.  That  the  possession  of  a  fund  for  investment  in  industrial  securities  is 
no  guarantee  of  wise  industrial  development. 

5.  That  more  thought  should  be  given  to  ways  and  means  that  make  it  pos- 
sible for  established  industries  to  grow  and  expand,  than  should  be  given 
to  efforts  to  secure  the  location  of  new  industries. 

6.  That  when  the  best  conditions  for  manufacture  and  the  proi^er  housing  of 
employees  of  established  industries  are  sufficiently  developed,  new  indus- 
tries will  seek  you,  rather  than  you  having  to  seek  them. 

7.  That  satisfactory  industrial  development  will  come  to  every  small  town 
when  these  things  have  been  done,  for,  in  the  doing  of  them,  the  human 
elements,  organization  and  cooperation,  will  have  been  brought  to  the  high- 
est point  of  development,  and  all  community  problems  may  be  solved  with 
despatch. 

The  Proper  Place  of  Industrial  Development  in 
the  Work  of  a  Commercial  Organization 

By  R.  H.  FAXON 

Cities  do  not  grow — they  are  made  I  And  yet,  industrial- 
ly, there  are  notable  examples  of  cities  which  have  not  been 
made,  but  have  gTOwn.  There  are  cities  where  every  natural 
law  of  industry  has  apparently  been  violated  or  has  failed  to 
work.  Such  cities  are  fortunate  indeed,  and  yet  they  do  not 
disprove  the  rule.  They  are,  rather,  the  exception.  There  is, 
for  instance,  no  special  reason  why  Battle  Creek  should  be  a 
cereal  center ;  Detroit  a  motor  center ;  Grand  Rapids  a  furniture 
center;  or  Ncav  England  the  center  of  the  textile  industry  or  of 
shoes.  Yet  the  last-  named  examples  emphasize  the  more  great- 
ly the  rule  that  cities  are  made  and  do  not  merely  grow.  But 
that  the  supply  of  material  is  an  overwhelming  incident,  is  illus 
trated  by  the  growth  of  the  textile  industry  in  the  South,  where 
cotton  grows,  and  by  the  shoe  industry  in  St.  Louis,  near  the 
leather-production  center. 

Therefore  economy  of  location  and  proximity  to  raw  ma- 
terials do  not  always  determine  the  location  of  industry. 

As  a  premise,  the  five  things  that  really  count  in  industrial 
work,  or  factory  location,  are :  Labor,  transportation,  materi- 
als, money,  and  market. 


PLACE  OF  INDUSTRIAL  DEVELOPMENT  IN  ORGANIZATION.      59 

Labor  is  the  element  often  considered  most  important.  A 
labor  market  has  in  the  past  been  deemed  essential  to  successful 
industrial  development.  Yet  it  may  be  accepted  that,  outside  of 
certain  peculiar  or  isolated  cases,  labor  will  go  where  industry 
begins  its  work. 

Transportation  is  an  important  factor,  yet  not  an  absolute 
essential.  We  find,  on  analysis  of  conditions,  that  Grand  Rap- 
ids still  remains  an  important  furniture  center,  despite  the  al- 
most total  lack  of  Northern  timber  and  the  distance  from  which 
it  has  to  secure  its  supply.  Massachusetts,  far  removed  from 
hides  and  leather,  save  by  importation  under  more  recent  legis- 
lation, continues  to  specialize  on  the  shoe  and  leather  business; 
and  its  raw  materials  of  cotton  are  a  long  distance  from  the 
place  of  production. 

Transportation  also  takes  into  consideration  the  haul  of  the 
finished  product  as  well  as  the  raw  material ;  but  in  this  era  of 
intensive  development  surrounding  so-called  ^^centers;''  with 
the  existence  of  successful  tariff,  freight,  or  transportation 
bureaus,  jealously  guarding  the  territory  of  these  ^^centers;" 
and  with  national  advertising  creating  a  countrywide  if  not 
international  demand  for  many  products,  the  distance  the 
product  has  to  go  is  found  to  be  no  insuperable  barrier. 

We  next  come  to  money  outlay.  Included  in  that  is  capi- 
tal, most  important,  and  its  procurement;  the  question  of  sal- 
aries and  wages,  matters  of  taxation,  including  war  and  other 
governmental  revenues  and  taxes;  credits,  and  the  amounts 
necessary  to  procure  materials  and  to  equip  industrial  institu- 
tions.   A  further  treatment  of  this  essential  will  be  found  later. 

As  to  market,  the  world  is  the  market  of  any  staple  product. 
There  is  little  barrier.  Coming  myself  from  an  inland  city, 
small  in  comparison  with  the  great  industrial  centers,  unde- 
veloped as  it  is  industrially,  and  not  known  to  fame  as  a  manu- 
facturing community  of  renown,  I  could  name  you  at  least  a 
half  dozen  products  which  go  to  not  only  the  length  and  breadth 
of  the  land,  but  into  foreign  countries  as  well.  How  much  more 
marked  this  is  in  a  hundred  other  communities ! 

The  Man  and  the  Market 

Into  the  term  "market"  go  many  things,  which  include 
production,  sales,  advertising,  management,  etc.  Without 
these,  the  word  "market''  is  not  embrasive.    And  here,  again, 


60  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

we  find  the  importance,  the  potency,  of  The  Man  Behind ! 
Someone's  vision,  someone's  strength  of  character,  someone's 
strict  integrity,  someone's  administrative  genius,  must  go  into 
the  product  from  its  inception  to  its  final  lodgment  with  the 
consumer,  else  we  have  not  suitably  defined  the  word  ^'market." 

There  can  be  no  royal  road  to  industrial  success  in  any 
community.  Seldom  can  any  wholesale  industrial  development 
be  attained.  If  a  community  starts  to  develop  some  one  indus- 
try, it  makes  it  the  better  for  others  in  that  line,  and,  ultimate- 
ly, the  community  develops  thereby.  The  success  of  one  man 
attracts  the  attention  of  another  in  the  same  line.  The  labor 
market  is  thus  created,  and  the  community  sort  of  specializes 
on  that  line.  Like  attracts  like.  Soon  the  community  becomes 
famous  as  of  one  thing.  But  the  best  balance  is  maintained, 
of  course,  by  a  careful  study  of  the  things  most  adapted,  the 
nearby  source  of  raw^  material,  the  small  market  that  may  first 
be  developed,  and  the  kind  of  men  that  may  be  massed  for  in- 
dustry in  general. 

It  is  a  starting  point  to  other  things.  It  may  be  accom- 
plished by  an  industrial  secretary,  or  by  a  general  secretary, 
or  by  a  committee,  or  by  a  bureau.  It  matters  not  so  long  as  it 
be  done.  When  it  is  done  and  done  right,  then  the  organiza- 
tion is  in  shape  to  do  more  industrial  work  intelligently. 

The  safest  and  surest  way  to  get  an  industry  is  to  discard 
all  the  Avellworn  methods,  study  the  local  situation  thorough- 
ly; take  the  local  survey  and  ascertain  as  above  indicated  the 
institutions  and  products  of  the  community,  the  lack,  and  the 
need,  and  then  make  a  systematic  effort  to  build  up  a  new  line 
or  a  weak  line.  The  opportunity  wdll  come — it  never  yet  failed 
to  pass  the  door  of  any  community,  and  only  may  be  intercepted 
by  an  alert  and  sane  community  organization.  An  invitation 
to  a  concern  that  seeks  to  remove  for  proper  reasons ;  the  sub- 
mitting of  a  brief  that  is  sensible  and  practical  and  shows  rates, 
market,  labor  conditions,  distribution,  and  general  community 
relations  toward  industry,  and,  most  of  all,  a  digiiified,  sensible 
desire  on  the  part  of  the  community  to  have  the  industry  in  its 
midst,  will  do  more  than  anything  else  ever  invented  to  bring 
it.  And  every  one  thus  brought  and  successfully  looked  after 
and  follow^ed  up  is  an  assurance  of  more  to  come  in  the  future. 

We  have  been  preaching  civics  in  our  commercial  organi- 
zations for  the  past  few  years.     Indeed,  it  may  be  said  that 


PLACE  OF  INDUSTRIAL  DEVELOPMENT  IN  ORGANIZATION.      61 

civics  occupies  nearly  one-half  the  average  community  organiza- 
tion effort.  We  assume  there  may  be  no  successful  contradic- 
tion of  this  assertion.  The  best  business  application  of  that 
fact  lies  in  its  relation  to  industry*.  For  instance :  we  may  lay 
it  down  as  axiomatic,  regardless  of  woeful  lack  in  so  many 
places,  that  if  it  is  best  for  the  community  to  have  parks  and 
boulevards  and  lighting  and  paving  that  is  worth  while,  and 
playgrounds  and  comfort  stations  and  a  clean,  wholesome  sur- 
rounding, it  is  doubly  well  for  industry  to  receive  its  share  of 
such  modern  civic  improvement  and  betterment. 

Housing,  industrial  welfare,  the  pension  system,  the  recog- 
nition of  the  man  factor  in  industry,  the  facilities  in  the  factory 
which  the  office  and  the  home  enjoy,  the  bonus  system,  the  re- 
fectory, the  clubs  and  all  that,  are  not  a  waste  in  overhead: 
they  are  a  definite  investment  and  a  part  of  the  institution 
outlay.  They  produce  results,  just  as  the  ordinary  civics  pro- 
duce results  in  the  general  citizenship. 

An  Industrial  Survey 

An  industrial  survey,  a  carefully  planned,  thoughtfully 
figured  out,  homegrown  affair,  which  would  not  go  above  the 
heads  of  a  committee  or  a  board,  and  which  would  not  be  con- 
fusing in  its  multiplicity  of  details,  should  be  provided.  Such 
a  survey  might  feature  cardinal  points  as  follows: 

Business  and  Administration — Name  and  character;  date 
of  establishment;  names  of  officers,  directors,  etc.,  especially 
including  engineer  and  works  manager ;  physical  value  of  plant. 

Plant — Location  and  physical  layout ;  number  of  buildings, 
and  whether  owned ;  surroundings,  as  to  density  of  population, 
isolation,  etc.;  character  of  building  construction;  floor  space; 
insurance;  fire;  heating  facilities;  water  supply;  power;  ele- 
vators and  safety  devices ;  clubs ;  telephones,  etc. 

Production — Seasonal  periods;  equipment;  routing  and 
follow-up  system;  organization  membership;  principal  materi- 
als used ;  principal  articles  manufactured ;  direct  marketing  or 
through  jobbers;  branches;  catalogs,  etc. 

Labor — Accessibility;  closed  or  open;  history  of  experi- 
ence ;  manner  of  settlement  of  trouble ;  workmen ;  clerical  force ; 
can  women  replace  men  if  necessary;  manner  of  payment; 
bonus ;  overtime ;  nationality,  etc. 


62  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Transportation — Trackage,  trucking  arrangement,  etc.; 
trunk  lines  accessible ;  switching  facilities ;  water  use,  if  any. 

Then  it  would  be  wise  to  include  some  addenda  as  follows : 

Laboratory  data ;  disposal  of  products  as  to  area  and  man- 
ner of  shipment,  especially  if  express  is  used;  list  of  principal 
competitors ;  railroad  service,  as  a  general  factor ;  use  of  traffic 
bureaus ;  materials  used,  source,  etc. ;  heat,  light,  power,  w^ater ; 
taxes,  etc. ;  by-products  and  waste. 

As  to  the  proper  place  of  industrial  development  in  a  com- 
mercial organization,  speaking  directly  and  briefly  to  that  one 
point:  There  are,  generally  speaking,  in  community  organiza- 
tion work  as  systematized  today,  four  great  subdivisions.  They 
are:  Organization  affairs;  public  affairs;  industrial  affairs, 
and  civic  affairs.  Each  is  co-ordinate.  Each  bears  its  proper 
proportion  of  importance  in  organization  work. 

What  Is  an  Industrial  Survey? 

BY  A  STUDENT 

The  term  "surve^^"  has  been  borrowed  from  the  science  of 
sociology.  It  has  been  expanded,  however,  until  the  expression 
*^an  industrial  survey"  has  come  to  mean  anything  from  a  card 
index  of  industrial  cities  to  an  elaborate  investigation  of  the 
industrial  resources  of  the  community. 

As  a  point  of  departure  it  might  be  well  to  define  more  or 
less  definitely  what  is  meant  by  industrial  survey  in  this  dis- 
cussion. For  purposes  of  argument  we  may  use  the  term  as 
including  any  attempt  to  deter miyie  and  list  the  factors  hear- 
ing on  the  industrial  prohlems  of  the  community.  Three  ques- 
tions at  once  present  themselves:  (1)  What  are  the  factors 
bearing  on  industrial  problems?  (2)  What  is  the  purpose  for 
Avhich  they  are  to  be  listed?  and  (3)  What  are  the  industrial 
problems  of  the  community? 

The  main  difficulty  in  industrial  surveys  as  conducted  by 
chambers  of  commerce  is  that  they  are  apt  to  be  carried  on 
from  the  viewpoint  of  "social  values"  rather  than  from  the  view- 
point of  the  manufacturers'  ledger. 

Let  us  illustrate:  There  is  a  certain  pork-packing  estab- 
lishment in  the  East  which  has  an  elaborate  system  for  collect- 
ing hogs  in  the  Mississippi  valley.  This  system  costs  thousands 
of  dollars  a  month  to  operate.    The  firm  also  has  a  system  of 


WHAT  IS  AN  INDUSTRIAL  SURVEY?  63 

education  for  its  employees  on  which  it  spends  a  great  deal  of 
money.  Every  part  of  the  factory  is  carefully  planned,  and 
expenses  are  watched  at  every  turn.  The  market  is  carefully 
studied  and  the  marketing  system  worked  out  by  the  company 
is  designeil  to  secure  the  largest  return  possible  from  the  entire 
output.  After  all  this  care  has  been  exercised  and  all  this  ex- 
pense laid  out,  the  company  figures  its  profits  on  all  the  animals 
it  kills  at  considerably  less  than  one-quarter  of  one  cent  a 
pound.  All  the  savings  and  all  the  advantages  over  the  com- 
petitors secured  by  careful  thought  in  the  planning  of  the  manu- 
facturing and  marketing  steps  may  be  wiped  out  by  a  little 
carelessness  anywhere  along  the  line.  For  instance,  in  the  cut- 
ting room  the  whole  profit  margin  may  be  wiped  out  by  care- 
lessness in  cutting  the  sides  into  their  two  main  parts — backs 
and  bellies.  There  is  a  strip  through  the  middle  of  each  side 
which  belongs  equally  well  with  either  type  of  product,  and 
if  the  price  of  backs  is  high  of  course  there  is  an  advantage  in 
cutting  the  backs  wide  and  getting  the  greatest  possible  amount 
of  backs  out  of  the  sides,  and  vice  versa.  The  point,  however, 
is  that  carelessness  in  this  one  detail  within  the  plant  may  off- 
set the  results  of  an  elaborate  system  for  making  savings)  in 
production  or  distributing  costs. 

This  illustration  may  make  it  clearer  than  the  bare  state- 
ment can,  what  is  meant  by  dealing  with  the  industrial  and 
commercial  factors  of  the  community-  from  the  point  of  view 
of  the  manufacturer's  ledger.  In  many  instances,  every  pos- 
sible advantage  which  the  community  can  offer  must  be  turned 
to  account.  But  such  advantages  as  labor  supply^  nearness  to 
market,  immunity  from  strikes,  or  even  cheap  power,  in  the 
manufacturer's  mind  only  work  out  into  figures  representing 
minute  fractions  of  a  cent  per  unit  of  product.  It  is  clear,  there- 
fore, that  what  may  appear  to  be  great  advantages  in  a  com- 
munity may  be  either  largely,  or  entirely,  ott*-set  by  apparently 
trivial  factors.  At  the  same  time  it  is  clear  also  that  certain 
apparently  trivial  factors  may  make  up  for  deficiency  in  what 
might  be  called  natural  equipment. 

This  idea  of  viewing  resources  from  the  standpoint  of  the 
manufacturer's  ledger  helps  us  to  explain  also  some  of  the  ap- 
parent contradictions  between  the  results  of  surveys  and  the 
actual  experience  of  communities.  For  instance,  if  we  viewed 
the  resources  of  Detroit  in  perfectly  cold  blood  the  probabili- 


64  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

ties  are  that  we  should  never  pick  that  as  the  location  for  the 
greatest  automobile  center  in  the  United  States.  What  appar- 
ently happened  was  that  certain  forceful  and  constructive  per- 
sons undertook  the  establishment  of  automobile  factories  there, 
and  the  personal  influences  were  strong  enough  to  counteract 
what  natural  disadvantages  there  might  have  been.  Illustra- 
tions of  the  same  thing  might  be  found  in  the  case  of  such  mat- 
ters as  a  minor  change  in  a  freight  rate.  There  are  instances 
also  where  the  mere  passage  of  time  with  the  resulting  depreci- 
ation of  property  has  been  sufficient  to  modify  the  larger  and 
apparently  more  powerful  factors  in  the  location  or  operation 
of  an  industry. 

Factors  Bearing  on  Industrial  Problems 

With  this  point  in  mind  it  is  possible  to  get  some  idea  of 
w^hat  type  of  factors  it  is  necessary  to  consider  in  an  industrial 
survey.  Strictly  speaking,  there  is  nothing  short  of  omni- 
science that  would  be  entirely  satisfactory  as  equipment  for 
conducting  an  industrial  survey.  There  is  no  feature  of  the 
civic,  social,  commercial,  or  political  life  of  the  community 
w^hic^h  might  not  have  a  bearing  on  industrial  location  and  op- 
eration. The  main  difficulty  is  not  to  find  factors  which  ought 
to  be  listed,  but  to  select  those  factors  the  listing  and  observa- 
tion of  Avhich  will  be  of  use.  It  perhaps  needs  no  demonstra- 
tion that  an  industrial  survey  may  very  quickly  clutter  itself 
up  with  the  mere  volume  of  detail  accumulated,  so  that  it  will 
be  of  absolutely  no  use  to  anyone. 

Two  common  errors  in  making  such  a  survey  may  serve  to 
sum  up  the  general  principles  underlying  the  process  of  selec- 
tion of  material  factors  in  the  situation.  The  first  of  these  is 
the  error  of  duplicating  work  already  done.  For  example,  one 
industrial  survey  which  closed  its  eyes  to  the  existence  of  a 
very  full  housing  survey  already  available  in  the  community, 
undertook  to  cover  incompletely  the  ground  which  had 
been  thoroughly  covered  by  the  housing  survey,  instead  of  go- 
ing through  the  housing  survey  and  selecting  and  indexing 
such  material  as  would  be  useful.  Another  case  may  be  cited 
where  several  thousand  dollars  were  spent  in  supplementing 
material  on  the  statistics  of  employment  on  tbe  theory  that  the 
state  statistics  on  the  subject  were  incomplete.  After  three 
years'  work  material  was  collected  which  was  perhaps  more 


WHAT  IS  AN  IXDUSTRIAL  SURVEY?  65 

detailed  than  the  state-s  figures,  but  a  portion  of  what  had  been 
collected  was  two  or  three  years  old  and  the  value  of  the  sta- 
tistics was  seriously  impaired  by  the  minuteness  with  which 
the  survey  had  been  conducted.  In  their  present  form  the  sta- 
tistics may  be  more  valuable  from  a  scientific  point  of  view, 
but  they  Avill  i)robably  be  no  more  useful  to  the  manufacturers 
than  are  the  state  figures. 

When  large  appropriations  are  not  available,  and  when  a 
large  staff  cannot  be  used  for  conducting  the  survey  within  a 
very  short  time,  one  of  the  most  important  steps  is  the  determi- 
nation of  what  material  already  exists  concerning  the  more 
conspicuous  factors,  and  a  careful  indexing  of  the  data  Avhich, 
while  they  may  have  been  collected  from  an  entirely  different' 
point  of  view,  may  be  extremely  useful  in  specific  cases. 

A  second  common  error  is  that  of  regarding  the  industrial 
survey  as  being  an  end  in  itself.  Its  chief  usefulness  is  in 
making  easy  of  access  facts  which  will  help  the  manufacturer 
to  judge  intelligently  the  suitability  of  the  community  for  his 
purposes.  A  survey,  therefore,  is  never  an  achievement;  it  is 
always  merely  a  tool. 

It  is  even  a  question  w^hether  a  separate  survey  from  the 
industrial  point  of  view  is  what  is  wanted  in  most  instances, 
and  not  an  index  of  the  significant  industrial  factors  brought 
out  in  either  a  general  civic  survey,  or  the  surveys  covering 
specific  parts  of  the  equipment  and  conditions  of  the  commu- 
nity. 

With  this  point  in  mind  it  is  evident  that  no  satisfactory 
general  schedule  of  factors  to  be  considered  in  an  industrial 
survey  can  be  made.  What  would  apply  in  one  community 
would  not  be  pertinent  in  another,  nor  would  the  same  lists  be 
equally  valuable  in  the  same  community  for  two  different  in- 
dustries at  the  same  time. 

The  Purpose  for  which  Factors  are  Listed 
The  second  question  is  what  is  the  use  to  be  made  of  the 
listed  factors  bearing  on  the  industrial  problems  of  the  commu- 
nity. For  the  sake  of  emphasis  let  us  repeat  the  answer  to  this 
which  has  already  been  given.  An  industrial  survey  is  not 
intended  to  take  the  place  of  the  brains  of  a  manufacturer.  Its 
task  is  to  help  him  to  ascertain  some  of  the  factors  useful  in 
the  process  of  reaching  a  decision  whether  to  locate  or  to  remain 
in  a  community,  or  to  modify  his  present  equipment  or  methods. 

3 


66  EFFICIEXCY  AND  CHARACTERISTIC  ACTIVITIES. 

As  in  the  case  of  the  factors  to  be  considered  so  in  the  case  of 
the  method  of  listing,  no  formula  for  a  survey  can  be  laid  down. 
In  fact,  in  many  instances,  the  most  useful  form  of  sui-vey  con- 
ceivable is  not  strictly  speaking  a  survey  at  all,  but  is  rather, 
as  has  already  been  intimated,  a  card  index  of  material  in 
existence.  But  whether  the  survey  takes  this  form  or  a  more 
elaborate  one  there  are  certain  general  features  which  may  be 
worth  consideration. 

In  the  first  place,  the  index  ought  to  be  in  such  form  that 
the  material  is  always  in  process  of  expansion  and  correction. 
An  industrial  survey  which  is  in  final  form  is  in  most  cases  no 
longer  of  any  use.  In  the  second  place,  one  of  the  most  con- 
'spicuous  features  of  the  survey  should  be  reference  to  compiled 
sources  and  to  sources  in  the  form  of  well-informed  men  who 
may  be  expected  to  supply  material  and  suggestions  on  the 
factors  under  consideration.  The  third  essential  should  be 
availability  of  the  material  for  use  without  the  guidance  or  in- 
terpretation of  anyone,  even  the  secretary  himself. 

Aside  from  these  features  there  is  little  that  is  common  in 
the  problems  of  compiling  and  indexing  the  material  bearing 
on  the  industrial  problems  of  the  community.  How  detailed  the 
material  is  to  be  will  vary  with  almost  every  case  which  it  is 
planned  to  serve.  What  standards  are  to  be  set  up  for  the  in- 
clusion and  exclusion  of  material,  also,  will  be  matters  impos- 
sible of  satisfactory  solution  according  to  any  general  formula. 

The  chief  objection  to  any  such  statement  of  the  case  as 
this  is  the  rather  sweeping  one  that  by  the  application  of  such 
standards  one  might  as  well  have  no  separate  industrial  survey 
at  all.  Except  as  a  matter  of  convenience,  and  as  a  tool  for  the 
saving  of  time  and  effort,  this  is  entirely  true ;  but  even  after  it 
has  been  gi-anted  that  the  survey  is  merely  a  device  for  making 
accessible  material  already  in  existence  there  is  still  a  large 
usefulness  for  it.  Certainly  in  most  cases  there  is  a  wide  gap 
between  dependence  on  the  general  information  of  the  secre- 
tary, and  having  available  an  index  of  this  kind  for  use  in  get- 
ting facts  about  the  industrial  situation. 

What  are  the  Industrial  Problems  of  the  Community? 

The  third  question  is,  what  are  the  industrial  problems 
of  the  community.  As  has  been  intimated  there  probably  is  no 
industrial  problem  absolutely  separate  from  all  the  other  prob- 


WHAT  IS  AN  INDUSTRIAL  SURVEY?  67 

lems  of  the  community,  but  there  certainly  are  questions  which 
arise,  the  bearing  of  which  is  mainly  industrial. 

For  example,  I  have  before  me  specimens  of  analyses  of  the 
industrial  and  commercial  resources  of  the  communities  pre- 
pared for  four  different  types  of  purpose:  (1)  An  analysis  of 
a  specific  industry  for  the  purpose  of  determining  the  facts  con- 
cerning a  restricted  number  of  features  of  that  one  industry; 
(2)  A  special  survey  of  a  certain  portion  of  the  resources  of  a 
community  for  a  specific  purpose ;  ( 3 )  A  general  survey  of  the 
community  for  the  purpose  of  bringing  out  a  specially  selected 
group  of  facts;  (4)  A  general  inventory  for  general  reference. 

The  fii*st  of  these — an  analysis  of  a  specific  industry  for  the 
purpose  of  determining  the  facts  concerning  a  restricted  num- 
ber of  features  of  that  one  industry — is  the  simplest  and  easi- 
est sort  of  survey  to  conduct.  The  ends  aimed  at  are  specific 
and  the  material  to  be  collected  is  not  so  diffuse  that  it  cannot 
be  readily  handled,  For  example,  in  the  city  of  Rochester,  a 
few  years  ago,  a  state  committee  met  for  the  purpose  of  investi- 
gating conditions  in  the  factories  in  Rochester.  The  testimony 
taken  at  this  time  was  made  the  basis  of  sensational  new^spaper 
articles  concerning  the  length  of  hours  and  some  features  of 
organization  in  the  clothing  factories  of  Rochester.  The  cham- 
ber of  commerce  undertook  to  ascertain  the  actual  facts  of  the 
case.  A  committee  was  appointed  for  the  purpose,  and  the 
committee  worked  with  diligence  and  with  absolutely  even 
handed  justice,  and  made  a  presentation  of  the  situation  which 
corrected  man}-  of  the  misrepresentations  in  the  newspaper 
article,  and  for  the  first  time  made  available  the  real  facts  of 
the  case. 

Such  a  survey  as  this  confined  to  a  single  industry,  and 
covering  a  concrete  group  of  problems  necessarily  is  much  more 
satisfactory  and  tangible  in  its  results  than  a  general  survey 
can  be,  but,  of  course,  the  number  of  surveys  of  this  sort  would 
have  to  be  multiplied  almost  indefinitely  before  they  would  be 
of  great  value  in  any  general  examination  of  the  industrial  con- 
ditions of  the  community. 

The  second  type  of  survey — a  special  survey  of  a  certain 
portion  of  the  resources  of  a  community  for  a  specific  purpose 
— is  comparatively  simple  also,  but  it  is  very  difficult  to  con- 
duct such  a  survey  and  keep  it  on  a  thoroughly  practical  and 
scientific  basis.    An  example  of  a  sui*vey  of  this  kind  w^ould  be 


68  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

the  examination  of  the  resources  of  a  city  for  the  purpose  of 
determining  in  a  general  way  its  adaptability  to,  say,  an  ex- 
pansion of  the  steel  rolling  industry  there.  The  general  facts 
of  course  may  be  ascertained  Avithout  difficulty,  but  when  it 
comes  to  the  real  concrete  factors  in  the  situation  one  is  con- 
fronted with  the  difficulty  of  presenting  the  real  inside  infor- 
mation, such  as  would  be  necessary  from  the  standpoint  of  the 
manufacturer's  costs  of  operation.  If,  for  instance,  there  should 
be  one  or  two  successful  steel  mills  in  the  city,  none  of  them 
would  be  willing  to  give  up  its  inside  figures  for  the  encourage- 
ment of  the  location  of  new  industries.  If,  on  the  other  hand, 
there  were  no  steel  mills  there,  almost  any  figures  would  neces- 
sarily be  conjectural. 

The  third  type  of  general  survey  for  the  purpose  of  bring- 
ing out  a  specially  selected  group  of  facts  is  extremely  useful 
as  an  adjunct  to  social  service  or  to  civic  investigations.  A 
good  example  of  this  Avas  a  survey  made  a  few  years  ago  in  the 
city  of  Cleveland  which  brought  out  certain  facts  about  the  in- 
dustries of  the  city  which  liad  not  been  available  before.  Notable 
among  these  was  a  collection  of  facts  about  gaps  in  the  indus- 
trial activities  of  the  city.  It  was  found,  for  example,  that  in 
some  instances  the  finished  product  of  certain  Cleveland  estab- 
lishments was  the  raw  material  for  factories  located  elsewhere, 
and  that  there  were  no  factories  of  the  second  type  in  the  city. 
On  the  other  hand,  it  was  frequently  found  that  Cleveland  in- 
dustries were  going  elsewhere  for  semi-manufactured  materials 
which  apparently  could  be  produced  quite  satisfactorily  in 
Cleveland. 

The  following  quotation  from  the  report  of  the  committee 
conducting  this  survey — which,  by  the  way,  was  not  called  a 
survey  but  merely  a  report  on  progress  in  industrial  develop- 
ment— will  indicate  something  of  Avhat  the  survey  revealed : 

Radiators : 

Thousands  are  used  in  Cleveland  and  its  immediate  vicinity  annually, 
none  are  made  here,  and  foundry  iron  goes  to  consumers  here  cheaper 
than  at  the  points  where  radiators  are  made. 

Woolen  fahric  and  xrool  yarn: 

Cleveland  is  one  of  the  greatest  centers  for  the  production  of  women's 
clothing  and  knit  goods ;  ahout  $8,000,000  worth  of  woolen  fabrics  is  used 
by  Cleveland  manufacturers  annually,  of  which  only  a  small  portion,  in  a 
few  grades,  is  woven  here ;  and  no  yarn  is  produced  here. 

Machine  tools : 

Some  are  made  in  Cleveland,  but  many  of  the  tools  most  generally  used 


WHAT  IS  AN  INDUSTRIAL  SURVEY?  69 

in  our  scores  of  machine  shops  must  be  bought  directly  or  indirectly  from 
outside  producers. 
Automobiles : 

Cleveland  is  one  of  the  largest  makers  of  automobile  parts,  but  exiwrts 
a  large  proportion  of  them  to  Michigan,  where  they  are  assembled  into 
the  cheaper  machines,  turned  out  in  large  quantities,  with  acres  of  fac- 
tories and  thousands  of  mechanics.  We  produce  high-grade  cars,  but 
why  not  also  the  cheaper  cars  in  larger  volume,  thereby  siwelling  our  own 
industrial  prosperity? 

This  ^survey  became  the  starting  point  for  a  long  series 
of  more  detailed  investigations  by  the  chamber  and  led  eventual- 
ly to  the  formation  of  the  Industrial  Development  Company 
which  has  for  its  object  assisting  in  the  financing  of  new  en- 
terprises and  the  undertaking  of  what  is  referred  to  as  a  thor- 
ough, exhaustive  survey  of  Cleveland  and  adjacent  territory  to 
secure  complete  analysis  of  every  industry  including  full  data 
as  to  its  sources  of  materials  and  its  products. 

The  type  of  survey  which  thus  fits  into  the  existing  studies 
of  conditions  in  the  city,  but  undertakes  to  view  them  primarily 
from  the  industrial  point  of  view  is  in  many  respects  the  most 
useful  and  suggestive  type  of  all. 

The  fourth  class  of  survey  which  has  been  referred  to  as  an 
inventory  of  general  reference  has  already  been  discussed  as 
a  convenient  means  to  the  end  of  working  out  the  industrial 
problems  of  a  community.  There  are  certain  secretaries  whose 
grasp  of  the  details  of  their  own  community  is  more  useful  for 
practical  purposes  than  any  survey  could  be,  but  at  the  same 
time  there  is  very  grave  danger  in  the  secretary's  assumption 
of  familiarity  with  facts  concerning  which  his  real  knowledge 
is  extremely  limited  and  vague. 

From  what  has  been  said  it  may  be  gathered  that  I  have 
some  doubts  about  the  value  of  a  separate  industrial  survey  to 
be  conducted  by  a  commercial  body  duplicating  the  work  of  civic 
or  social  surveys  already  in  existence.  On  the  other  hand,  I 
am  convinced  that  it  is  unfortunate  for  secretaries  as  a  whole 
to  have  at  hand  for  general  use  no  more  really  specific  and  re- 
liable information  about  their  city  than  is  commonly  available. 
In  every  community  there  certainly  ought  to  be  somewhere, 
either  at  the  chamber  of  commerce  or  in  some  other  place,  a 
collection  and  a  carefully  prepared  index  of  such  written  or 
other  material  as  is  available  in  the  way  of  reliable  facts  about 
the  industrial  and  commercial  equipment  of  the  city.  More- 
over, even  small  organizations  might  well  turn  their  attention 


70  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

to  the  preservation  and  maintenance  of  what  might  be  called  a 
current  catalogue  of  some  of  the  more  obvious  industrial  and 
commercial  factors.  For  example,  maps  of  the  city  showing 
at  a  glance  insurance  districts,  tax  rates,  passenger  transporta- 
tion facilities,  available  industrial  locations  and  similar  facts 
ought  to  be  a  part  of  the  equipment  of  each  commercial  organi- 
zation office.  The  following  list  of  some  of  the  concrete  types 
of  material  collected  for  a  surve^^  conducted  in  Minneapolis 
contains  some  suggestions  which  ought  to  be  of  value  to  any 
secretary,  and  which  are  much  more  useful  for  i^ractical  pur- 
poses than  a  great  deal  more  detailed  material  hid  away  in  a 
file: 

Compilatioii  of  lists  and  maps  of  available  factory  sites  both  improved 
and  unimproved,  together  with  full  description  of  the  same  with  regard  to  size. 
location,  character  of  buildings,  proximity  to  labor  supply  and  transportation 
facilities,  insurance  rates  on  stock  and  machinery,  etc. 

Preparation  of  more  than  one  hundred  maps,  charts  and  tables  showing 
various  phases  of  industrial  development. 

Analysis  of  industries  to  show  which  are  declining,  which  are  stationary 
and  which  are  advancing,  together  with  the  reasons  therefore. 

Preparation  of  maps  showing  localization  of  various  classes  of  industries. 

Preparation  of  maps  and  charts  showing  principal  distributing  centers 
for  local  industries. 

Analysis  of  trade  tendencies  in  local  territory  to  discover  changes  in 
industrial  relations  by  which  local  establishments  may  profit. 

Back  of  these  the  amount  of  detail  would  depend  on  the 
resources  of  the  organization,  but  material  of  this  kind  ac- 
curate enough  for  most  cases  can  be  obtained  Avithout  great 
cost,  and  in  most  instances,  the  collection  of  the  really  inti- 
mate and  detailed  material  can  better  be  done  by  individuals 
than  by  any  organization  undertaking  to  have  a  universal 
knowledge  on  hand  for  everybody. 

Factors  In  Securing  Factories 

By  J.  F.  CARTER 

The  main  factors  of  factory  efficiency  are  labor,  transpor- 
tation, materials,  investment,  markets  and  location.  While 
some  of  these  are  primary  essentials,  others  are  only  apparently 
so. 

Let  us  examine  location  as  a  factor.  For  instance,  the 
furniture  factories  are  located  in  and  around  Grand  Rapids, 
while  the  mahogany  and  Circassian  walnut  are  imported 
through  New  Orleans  and  New  York,  and  the  red  gum  and 


FACTORS  I^^  SECURING  FACTORIES.  71 

oak  grow  natively  in  the  extreme  south.  Raw  materials  must 
travel  far  out  of  the  way  to  be  manufactured  in  Grand  Rapids 
and  shipped  to  the  center  of  population.  There  is  here  an  evi- 
dence that  the  economy  of  location  is  not  decisive.  Hence,  it 
would  seem  that  there  is  some  other  factor  which  has  a  bearins:. 

Detroit  is  an  automobile  center;  New  Orleans  is  a  burlap 
bag  center;  eastern  Massachusetts  is  a  shoe  center,  and  Grand 
Rapids  is  a  furniture  center.  A  few  years  ago  some  men  start- 
ed a  shoe  factory  in  St.  Louis,  and  another  was  started  as  soon 
as  the  tirst  one  showed  signs  of  success.  Today  St.  Louis  rivals 
l>oston,  and  men  have  no  fear  of  making  shoes  in  St.  Louis. 
It  has  been  but  a  few  years  since  some  brave  fellows  in  a  little 
town  in  North  Carolina  invested  their  local  money  in  a  furni- 
ture plant — today  High  Point  is  the  furniture  center  of  the 
southeast. 

Within  two  years  there  have  been  many  "Made  at  Home" 
exhibits  and  expositions  and  campaigns  held  in  the  larger  cities 
of  this  country.  The  newspaper  comments  and  publicity  and 
some  of  the  letters  of  the  commercial  bodies  in  those  cities  cried 
aloud  against  the  shame  of  their  people  buying  goods  outside 
of  town  when  they  were  made  in  their  own  home  city — at  the 
lack  of  patriotism  of  the  people  of  "our  town''  in  purchasing 
the  goods  made  in  a  competitive  city. 

The  Factor  of  Chief  Importance 

It  Avould  seem,  really  that  after  a  study  of  the  whole  field, 
after  a  few  years'  review  of  the  situation,  first  studying  the  ele- 
ments of  economic  location  and  comparing  the  conclusions  with 
the  actual  location  of  factories,  manufacturing  of  almost  any 
article  is  successful  in  almost  any  part  of  the  country. 

The  man  is  the  real  factor  in  successful  manufacturing. 
It  is  the  human  element  that  counts,  and  which  is  left  out  of 
the  calculations  of  commercial  secretaries. 

This  does  not  argue  that  there  is  nothing  to  be  gained  from 
the  study  of  economics  of  location,  nor  that  we  should  not  try 
to  influence  some  of  the  furniture  factories  to  leave  Grand 
Rapids  by  proving  that  the  combination  of  the  five  great  ele- 
ments of  economic  location  are  more  favorable  to  the  furniture 
manufacturer  at  New^  Orleans  than  at  Grand  Rapids;  nor  that 
Kansas  City  should  not  try  to  lure  the  woolen  mills  of  the  east 
by  showing  them  that  the  combination  of  the  ^ye  great  elements 
favors  Kansas  City  as  against  any  of  the  New^  England  loca- 


72  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

tions.  But,  here  it  is  clear,  that  when  nothing  is  added  to 
these  economic  arguments  by  the  cities  which  are  so  economi- 
cally situated,  factories  are  not  seen  moving  to  them  in  great 
numbers,  while  factories  of  various  kinds  are  moving  to  those 
cities  which  are  advertising  themselves  in  a  big  way,  and  grant- 
ing concessions  to  plants. 

Little  attention  need  be  paid  to  some  items :  For  instance, 
as  calculated  against  the  total  production  of  a  factory,  the 
average  percentage  paid  out  in  power  is  slightly  more  than  two- 
tenths  of  one  percent ;  pow  er  that  includes  cost  of  fuel,  or  cost 
of  production  of  power  of  any  kind,  or  cost  of  renting  power  of 
any  kind.  Taxes,  even  including  the  internal  revenue  charges, 
amount  to  less  than  two-tenths  of  one  percent. 

Here  and  there  we  find  a  factory  which  uses  large  amounts 
of  power,  and,  in  such  cases,  it  might  be  well  for  the  commer- 
cial secretary  to  find  ways  and  means  of  reducing  the  cost  of 
power,  or  of  exhibiting  to  the  prospective  manufacturer  what 
low  cost  is  to  be  found  in  his  particular  city.  But,  as  a  general 
rule,  it  applies  in  far  the  greater  number  of  cases,  the  cost  of 
power  and  taxation  has  a  very  small  bearing  on  the  total  busi- 
ness done.  Many  manufacturers  may  talk  of  taxation,  but  when 
the  tax  bill  is  paid  it  figures  as  a  very  small  part  of  the  total 
expense. 

Going  further  through  the  census  figures,  we  find  that 
salaries  amount  to  5.1  percent  of  the  value  of  the  product 
turned  out  in  the  average  factory,  and  that  wages  amount  to 
18.6  percent  of  the  total. 

Some  Other  Important  Items 

Then  Ave  approach  the  real  crux  of  the  situation — the  ma- 
terials amount  to  63.8  percent  of  the  total  manufactured  prod- 
uct, and  by  "materials"  the  census  bureau  has  specifically 
stated  that  it  means  the  materials  used  in  manufacture,  plus 
the  mill  supplies  used  by  the  factory,  plus  the  container  of  the 
product. 

The  "miscellaneous^-  item  forms  10.5  percent  of  the  total 
value  of  manufactured  products;  this  miscellaneous  item  in- 
cludes rent  of  offices  and  buildings,  exclusive  of  factory,  and  in- 
cludes rent  of  machinery,  royalties,  use  of  patents,  insurance, 
ordinary  repairs  of  buildings  and  machinery,  advertising,  trav- 
eling expenses  and  all  other  sundr^^  expenses.  This  item  also 
includes  the  taxes  and  revenue  charges. 


B^ACTORS  IN  SECURING  FACTORIES.  73 

Now,  there  comes  the  question  of  transportation  of  the 
manufactured  goods  to  the  market,  and  there  are  no  figures 
given  on  the  question.  It  would  help  us  a  great  deal  were  we 
able  to  know  this. 

May  I  revert  for  a  moment  to  the  much-talked-of  topics  of 
taxation  and  fuel,  and  call  your  attention  to  the  fact  that  the 
percentage  paid  out  in  salaries  (without  mention  of  wages) 
is  more  than  twelve  times  as  great  as  the  items  of  taxation  and 
fuel  combined?  Yet,  commercial  secretaries  will  use  their 
efforts  in  arguing  taxation  and  fuel  items,  when  the  manufac- 
turer himself  can  wipe  out  all  the  ground  he  gains  by  the  mere 
payment  of  a  little  salary  to  someone  who  might  be  useless  to 
the  plant. 

In  discussing  this  item  of  fuel :  Why  is  it  that  secretaries 
will  discuss  the  price  of  coal  per  ton?  Coal  is  not  valued  by 
the  ton  by  a  good  manufacturer.  What  he  is  looking  for  is 
coal  with  heat  units  in  it,  and  the  chances  are  that  he  pays 
more  when  he  buys  a  low-priced  coal,  than  when  he  buys  a 
high-priced  coal,  for  in  the  latter  case  he  is  getting  a  coal  with 
heat  units  which  are  available  with  the  least  destruction  of 
his  boilers  or  grate  bars,  or  waste  of  time  to  bis  firemen  in 
dumping  ashes.  Coal  is  good  or  bad  or  indifferent.  It  should 
be  analyzed,  and  each  manufacturer  should  buy  that  coal  which 
gives  him  minimum-priced  horsepower.  He  should  figure  his 
coal  by  the  horsepower  hour,  just  as  he  buys  his  electricity  from 
a  public  utilities  corporation  by  the  kilow^att  hour. 

The  Influence  of  Market  Problems 
The  item  of  "market"  is  one  of  the  important  factors  in 
locating  a  factory,  or  a  branch  plant.  "Market"  certainly  is 
not  composed  of  the  population  of  the  city  or  its  state.  "Mar- 
ket" is  all  that  territory  which  can  be  reached  in  competition 
with  any  other  center  of  manufacture  of  the  same  article.  Com- 
merce is  the  movement  of  things  from  the  place  where  they  are 
abundant  to  the  place  where  they  are  not.  "Market,"  viewed 
from  the  standpoint  of  an  industrial  location,  is  all  that  terri- 
tory to  which  the  manufacturer  can  go  on  an  equality  with  his 
competitor.  "Market,"  to  the  largest  extent,  is  bounded  by  the 
line  of  demarkation  of  comparative  freight  or  express  rates, 
the  comparison  being  between  the  proposed  location  and  some 
competitor  or  several  competitors.  That  is,  "market"  for  agri- 
cultural implements  for  a  proposed  factory  at  Houston,  is  pri- 


74  EFFICIENCY  AND  CHARACTERISTIC  AC^TIVITIES. 

marily  that  territory  into  which  the  Kansas  City  and  Moline 
manufacturers  of  implements  can  not  go  as  against  freight 
rates  applying  out  of  Houston.  In  brief,  any  argument  offered 
hj  the  industrial  secretary  as  to  markets,  must  be  based  very 
largely  upon  freight  rates  applying  on  the  particular  com- 
modity. 

However,  if  it  can  be  shown  that  the  combination  of  cost 
items  are  lower  at  Houston  than  at  Kansas  City  or  Moline,  the 
territory  broadens  slightly  and  goes  beyond  the  freight  rate 
line  of  demarkation.  This  is  drawing  a  very  fine  line  on  the 
work  of  the  industrial  secretary,  and  Ave  find  very  few  of  them 
who  come  to  a  discussion  of  cost  items  with  any  degree  of  defi- 
niteness  or  accuracy. 

In  thus  attempting  to  define  "market,"  I  have  assumed  that 
the  factor}'  shall  make  a  piece  of  goods  in  which  there  is  compe- 
tition, such  as  cigars,  candy,  caskets,  paint,  gas  engines,  etc. 
There  are  some  commodities,  of  course,  which  have  little  com- 
petition and  which  travel  far  beyond  any  territory  bounded  by 
freight  rate  lines. 

One  point  I  wish  to  drive  hard  upon  is  this:  that  "mar- 
ket" is  not  present  merely  because  a  certain  commodity  is  not 
made  in  a  city.  For  instance,  there  is  no  paper  factory  at  El 
Paso — and  this  can  never  be  taken  as  an  argument  that  the 
"market"  at  El  Paso  forms  a  reason  for  the  location  of  a  paper 
plant. 

The  Matter  of  Money  Outlay 

One  of  the  major  elements  in  economic  location  is  known 
as  investment  or  "Money  Outlay."  It  is  my  impression  that 
just  here  lies  one  of  the  chief  factors  in  securing  factories. 
I  am  opposed  to  the  bonus,  unalterably  opposed  to  it.  "Money 
outlay"  includes  the  cost  of  the  site,  the  improvement  of  that 
site  and  its  approach,  the  cost  of  building  materials,  the  bank 
credit  facilities,  the  licenses,  corporation  laws  and  costs,  ease  of 
obtaining  additional  subscriptions  to  stock,  ease  of  selling 
bonds  or  other  securities,  and  like  items.  And,  of  these, 
the  factor  which  arises  often  is  a  combination  of  cost  of  site, 
credit  facilities  and  stock  subscription.  It  is  not  the  big  manu- 
facturer with  plenty  of  capital  who  is  seen  before  our  commit- 
tees in  an  effort  to  locate — ^it  is,  rather,  the  small  man  who  has 
worked  himself  up  from  a  degree  above  zero  and  who  is  in  search 
of  help  after  proving  to  himself  that  he  is  deserving  of  it.    He 


FACTORS  IN  SECURING  FACTORIES.  75 

wishes  to  have  more  money  behind  him,  wishes  to  be  given  a 
strong  push  along  the  highway  which  he  has  been  following, 
and  he  seeks  that  place  where  the  i^eople  are  willing  to  give 
him  the  necessary  aid.  We  speak  now,  of  course,  of  the  legiti- 
mate, honest  manufacturer. 

This  does  not  rise  out  of  an  attempt  on  the  part  of  run-down 
plants,  or  poorly-operated  plants,  or  poorly-managed  plants  to 
get  enough  money  from  someone  to  head  off  its  creditors  for  a 
period.  There  comes  a  demand  for  local  investment  from  some 
of  the  very  best  managed  plants — plants  which  are  perfectly 
solvent  and  which  have,  for  quite  a  time,  been  paying  good  divi- 
dends. 

It  is  a  \ers^  easy  matter,  however,  to  be  tricked,  and  it  is 
also  a  ver}^  easy  matter  for  a  commercial  secretary  to  criticize 
others  for  not  putting  in  their  money  to  help  the  city  gain  new 
enterprises.  The  average  man  seeking  factories  for  his  city  has 
probably  not  lost  a  large  proportion  of  his  own  money  by  ven- 
turing in  other  people's  enterprises,  else  he  would  not  be  so 
prone  to  find  fault  with  his  own  townspeople  for  being  slow  in 
making  investments  in  divers  plants  Avhicli  he  may  have  inter- 
ested in  locating. 

There  are  several  ways  of  raising  money  for  the  prospec- 
tive incoming  factor^'.  One  is  by  direct  solicitation  of  stock 
subscriptions  among  the  townspeople  or  members  of  the  com- 
mercial organization  for  each  separate  plant;  another  is  by 
the  raising  of  a  fund  which  shall  be  used  in  making  such  in- 
vestments; a  third  is  by  the  adoption  of  a  guarantee  plan  for 
backing  the  credit  of  the  manufacturer ;  and  another  is  the  sub- 
division plan.  It  may  well  eliminate  that  plan  which  demands 
that  the  secretary  go  about  tlie  city  in  an  effort  to  interest  a 
dozen  individuals  in  an  enterprise — getting  one  located  in  that 
vi^ay,  and  then  proceeding  on  the  same  line  for  the  second. 
This  is  a  very  weak  plan,  just  as  is  that  one  by  which  a  meet- 
ing of  citizens  is  called  and  voluntary  subscriptions  to  stock 
are  asked.  It  works  once  or  tAvice  and  then  fails.  The  sub- 
scriptions are  made  on  a  basis  of  patriotism  and  not  on  a  basis 
of  investment. 

The  Attitude  of  the   Banks. 

The  guarantee  plan,  by  Avhich  the  manufacturer  borrows 
money  at  a  bank  and  has  a  special  list  of  subscribers  standing 
back  of  his  note,  does  not  appear  to  be  a  good  one.    Cities  that 


76  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

have  tried  it  will  not  employ  the  guaranty  plan  again.  Boston 
is  a  very  fine  evidence  of  this.  Boston  is  willing  to  state  that 
the  guaranty  plan  was  a  failure  in  that  city.  It  does  not  af- 
ford an  opportunity  for  anyone  but  the  manufacturer  and  the 
banker  to  profit.  The  bank  makes  its  interest  on  the  loan  and 
is  secured  by  having  prominent  men  of  the  community  endorse 
the  paper ;  the  manufacturer  is  given  the  chance  to  make  money 
manufacturing  or  to  experiment  on  other  people's  money,  him- 
self having  whatever  chances  there  are  to  win,  while,  if  he 
loses,  the  citizens  of  the  community  are  given  the  bag  to  hold. 

A  Fund  for  Industrial  Development 
Then  there  is  the  fund  of  cash  for  the  purpose  of  investing 
in  securities  of  a  factory.  A  fund  of  $400,000  is  raised  by  popu- 
lar subscription,  and  a  call  for  the  payment  of  ten  percent  in 
cash  is  made.  The  ten  percent  is  placed  in  bank.  We  now  have 
a  factor}"  approach  us.  It  looks  good;  we  investigate;  it  still 
looks  good,  and  we  have  the  committee  make  an  investigation ; 
it  continues  to  look  good,  and  the  investment  is  made.  The 
money  is  either  borrowed  from  the  bank,  putting  up  the  cash 
payment  as  collateral  by  promising  to  leave  it  on  deposit,  or  the 
cash  fund  itself  is  used  and  a  second  call  for  ten  percent  is 
made  for  use  in  the  next  factory.  So  on  we  proceed  until  the 
entire  fund  is  exhausted.  What  is  the  result?  Some  of  those 
plants  will  fail,  others  succeed,  and  a  third  group  will  hold  their 
own,  shoAving  neither  progress  nor  retrogression.  The  invest- 
ments, as  investments,  will  go  the  way  of  that  sort — the  divi- 
dends from  the  paying  plants  will  not  take  care  of  the  losses 
of  those  which  fail  to  pay.  Of  course,  it  must  be  understood 
that  we  are  discussing  this  entirely  from  the  standpoint  of  in- 
vestment— forgetting  the  good  which  the  plants  do  for  the  city 
by  their  employment  of  labor. 

The  Industrial  Sub-division 
There  have  been  several  industrial  subdivisions  in  towns 
and  cities  of  this  country,  some  operated  as  private  enterprises 
and  others  operated  by  commercial  bodies  without  profit.  Such 
industrial  subdivisions  as  a  rule  have  been  successful.  The 
reason  is  that  investment  is  obtained  for  a  group  of  plants 
without  asking  the  townspeople  to  invest  directly  in  the  stock 
of  the  factory  and  thus  have  a  reasonable  chance  of  losing; 
that  the  townspeople  invest  in  a  piece  of  land,  by  the  growth 


FACTORS  IN  SECURING  FACTORIES.  77 

of  the  town  in  a  natural  manner  and  by  the  forced  growth  of 
the  particular  section  by  the  location  of  factories,  they  have  a 
much  better,  almost  certain,  chance  to  realize  their  investment, 
with  the  additional  chance  of  profit  on  the  land  adjacent  to  the 
factories. 

It  becomes  necessary,  of  course,  for  the  industrial  secre- 
tary to  Avork  out  a  plan  of  industrial  subdivision  which  will 
contain  the  greatest  numl>er  of  advantages  for  the  various  fac- 
tories, such  as  street  car  transportation  for  labor,  several  spur 
tracks  from  different  railroads,  the  installation  of  water,  gas, 
electricity,  telephone  service  and  sewerage.  An  active  indus- 
trial secret aiy  could  build  a  model  industrial  center  if  he  so 
desired,  thus  giving  advertising  to  his  city  which  is  of  consider- 
able value  beyond  the  mere  location  of  the  plants. 

Since  the  investment  of  money  or  the  granting  of  conces- 
sions has  brought  about  such  plans  as  the  guaranty,  the  ex- 
emption from  taxation,  free  sites,  and  investment  companies, 
all  of  Avhich  have  had  serious  disadvantages  and  drawbacks, 
the  industrial  subdivision,  operated  without  profits  to  any  pri- 
vate person,  is  the  method  which  will  get  the  greatest  support 
from  townspeople  and  Avhich  will  solve  the  question  of  invest- 
ment and  granting  of  concessions  to  plants. 

The  industrial  secretary  should  have  his  own  survey  in 
liand,  and  should  know  more  especially  the  class  of  factories 
which  would  have  the  least  chance  at  success  and  those  which 
would  have  the  best.  Among  the  leading  factors  in  securing 
factories  advertising  is  first,  and  the  second  factor  is  the  ease 
of  obtaining  help  for  the  honest  manufacturer  who  is  solvent 
and  can  show  that  he  wdll  succeed  with  more  capital  behind 
him. 

The  five  great  elements  of  economic  location  are  primarily 
those  which  a  manufacturer  should  study  closely  before  trying 
to  change,  but  the  two  mentioned  are  those  which  an  industrial 
secretary  should  study  before  he  will  be  successful  in  locating 
plants.  To  some  cities  factories  have  a  tendency  to  drift — to 
others  they  must  be  attracted. 


Industrial  Survey  of  the  City 

What  it  Involves,  and  the  Results  to  be  Expected 
By  EMMETT  HAY  NAYLOR 

The  preparation  of  the  municipality  for  industries  involves 
making  a  complete  industrial  survey.  This  should  be  done  by 
classifying  all  the  present  industries  of  the  cit}^  as  to  their 
products,  volume  of  business  and  financial  standing.  All 
freight  rates,  shipping  charges  (by  water  or  rail),  should  be 
analyzed.  The  housing  conditions  of  the  employees  should  be 
investigated.  When  all  these  facts  are  gathered  together,  then 
a  careful  study  should  be  made  of  the  situation  with  the  knowl- 
edge at  hand.  If  there  is  any  industry  already  in  the  city 
Avhich  needs  financial  aid  or  proper  management  or  other  need- 
ful direction,  it  should  be  assisted.  By  all  means,  the  in- 
dustries already  located  in  the  city  should  be  assisted  first, 
before  any  new  ones  are  sought.  If  the  freight  rates  are  not 
satisfactory,  they  should  be  adjusted.  If  the  housing  condi- 
tions and  home  advantages  are  not  desirable,  they  should  like- 
wise be  rectified.  In  this  analysis  should  be  determined  the 
weak  spots  in  the  industrial  life,  and  they  should  be  strength- 
ened. 

Then  the  question  will  arise,  ^'What  does  the  city  want  as 
regards  new  industries?''  It  is  never  safe  for  any  city  to  have 
one  product.  The  industries  of  the  municipality  should  be  di- 
versified so  that  in  time  of  depression  of  one  article,  the  others 
will  maintain  an  equality  of  business  activity. 

Another  question  that  should  arise  is:  "What  industries 
is  the  city  most  fitted  to  take  care  of  as  regards  the  locality  of 
the  city?'-  A  city  should  guarantee  high  profits  to  the  manu- 
facturer by  natural  advantages — a  net  profit  greater  than  would 
be  possible  in  any  other  city  for  this  particular  product. 

Also,  in  considering  the  industrial  situation,  and  in  bring- 
ing new  industries  to  the  city,  labor  conditions  and  the  possi- 
bilities of  strikes  should  be  in  every  instance  regarded. 

When  we  consider  that  the  average  gain  from  year  to  year 
in  urban  population  for  the  United  States  was  35  per  cent  and 
that  the  average  gain  in  manufacturing  for  the  United  States 
was  81  per  cent,  it  is  plainly  manifest  that  the  factories  supply 
prosperity  to  the  cities.  In  the  New  England  district,  we  find 
the  payroll  and  net  factory  cash  spent  through  the  regular 

78 


INDUSTRIAL  SURVEY  OF  THE  CITY.  79 

channels  of  stores,  banks,  realties,  etc.,  amounts  to  about  |1200 
for  every  family,  city  and  country,  while  in  the  South,  West, 
Southeast  and  Soutlnvest,  it  reaches  about  |150  per  family.  If 
the  same  proportionate  factory  business  be  located  in  a  city  of 
100,000,  it  would  mean  an  increase  of  some  |20,000,000  spent 
yearly  in  that  city,  or  some  $1000  more  for  every  family. 

Now,  when  the  city  has  been  placed  in  a  position  to  invite 
new  industries  to  it,  and  has  no  needful  industries  of  its  own, 
and  it  has  been  determined  what  class  and  kind  of  new  indus- 
tries are  desired,  we  go  to  our  next  step. 

Solicitation  of  New  Industries 

The  solicitation  of  new  industries  may  be  done  in  two 
ways :  the  indirect  or  receptive  manner,  and  the  direct  or  aggres- 
sive manner. 

The  indirect  or  receptive  manner,  is  by  advertising.  Mu- 
nicipal advertising  for  industries  does  pay  for  the  commercial 
organization  that  has  unlimited  funds  to  spend  in  such,  but  for 
a  commercial  organization  to  have  only  a  small  campaign  of 
advertising,  with  little  or  no  money  to  devote  to  it,  is  a  loss. 
The  advertising  of  the  municipality  for  industrial  purposes 
will  bring  in  a  great  many  replies  w^hich  will  be  chiefly  chaff, 
but  among  them  there  may  be  one  or  two  kernels  of  pure  wheat. 
The  commercial  organization,  hoAvever,  always  should  have  on 
hand  all  up-to-date  information  as  regards  wages  of  labor, 
freight  rates  by  rail  or  Avater,  power  rates,  light  rates,  rentals 
for  workmen,  cost  of  fuel,  available  raw  materials,  etc.  Such 
literature  as  is  sometimes  foisted  upon  the  public  by  munici- 
palities, showing  delightful  scenes  and  written  in  fine  descrip- 
tive power,  makes  pleasant  reading,  but  the  average  industry 
wants  to  know  definite  and  vital  facts.  Fine  illustrated  book- 
lets showing  the  city  as  a  good  place  to  live  in,  and  to  do  busi- 
ness in,  are  desirable,  but  facts  and  figures  of  a  business  nature 
are  more  essential.  A  card  system  should  be  established  by  the 
commercial  organization  by  Avhich  all  available  factory  sites, 
buildings  for  rent,  etc.,  should  be  kept  up-to-date  and  on  hand 
for  immediate  and  ready  replies.  On  this  card  should  be  the 
following  information :  Size  of  lot,  location,  size  and  character 
of  building,  space  available,  light,  for  heavy  manufacturing,  for 
light  manufacturing,  kind  of  business  desired,  elevators,  power, 
railroad  facilities,  sale  price,  rental  and  the  name  of  owner  and 
agent. 


80  EFEICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

The  industry  applying  for  information  and  assistance  from 
the  commercial  organization  should  be  told  exactly  the  position 
of  that  commercial  organization  as  regards  new  industries,  so 
that  there  may  be  no  misunderstandings  and  no  waste  move- 
ments in  going  after  something  which  in  the  end  will  mean  noth- 
ing. The  assistance  of  the  railroads  sliould  be  sought  in  fur- 
nishing information  to  commercial  organizations,  as  it  is  as 
much  their  business  as  anyone's  to  bring  new  industries  into 
the  city. 

The  direct  or  aggressive  method,  is  to  concentrate  on  the 
particular  kind  of  industry  that  is  desired  for  the  city.  It  is  bet- 
ter to  go  after  one  or  two  than  to  give  a  great  broadside  by  a 
whirlwind  advertising  campaign  and  be  indifferently  effective. 
Through  the  press  clipping  bureaus  and  hj  other  means,  a  sec- 
retary can  keep  constantly  in  mind  labor  conditions  in  other 
municipalities,  where  fires,  etc.,  have  taken  place,  and  if  he  sees 
there  an  industry  which  he  thinks  should  be  better  located  in 
his  city,  he  can  then  go  to  them  with  a  proposition  at  the  time 
of  their  trouble,  and  they  may  consider  a  change.  In  this  he 
has  to  be  the  diplomat,  in  becoming  acquainted  with  the  offi- 
cials of  the  company  and  suggesting  to  them  the  possibilities  of 
a  change.  It  is  never  wise  to  talk  to  an  old  and  established  in- 
dustry about  moving  their  entire  plant  to  another  city.  It  is 
better  to  talk  to  them  about  establishing  a  branch  plant  in 
your  city  and  then  eventually  you  may  get  the  entire  industry. 
If,  however,  the  secretary  cannot  make  a  personal  visit,  he  can 
at  least  Avrite  a  letter  which  is  full  of  personality  and  sincerity, 
but  which  contains  convincing  facts.  If  there  is  one  "DON'T'' 
that  I  would  suggest,  it  would  be  DON'T  USE  CIRCULARS. 
They  are  a  waste  and  a  quasi  insult.  If  the  industry  is  worth 
going  after,  it  is  worth  at  least  spending  two  cents  on  in  a  per- 
sonal letter. 

Investigation  of  New  Industries 

In  the  investigation  of  the  ncAV  industry,  judgment  and 
analytical  work  must  be  used.  This  is  the  part  of  the  indus- 
trial committee  of  the  commercial  organization.  The  thing  to 
beware  of  in  the  new  industry  is  the  bonus-hunting,  the  fly-by- 
night  concern  which  wishes  to  come  to  your  city,  raise  money, 
do  manufacturing  there  for  a  while,  and  then  move  on  to  the 
next  municipality.  The  woods  are  full  of  tramp  industries  the 
same  as  they  are  full  of  tramp  individuals  looking  for  a  hand- 


INDUSTRIAL  SURVEY  OF  THE  CITY.  81 

out.  And  if  they  come  to  your  city  and  locate  and  then  fail, 
they  leave  industrial  scars  which  are  hard  to  eradicate.  No  city 
is  desirous  of  the  reputation  of  being  the  '^home  of  industrial 
failures." 

And  yet,  one  must  not  be  too  independent  as  regards  the 
consideration  of  new  industries.  All  merit  some  thought.  For 
instance,  a  man  once  came  to  a  city  in  New  England  with  a  new 
kind  of  biscuit.  He  invited  some  of  the  so-called  progressive 
citizens  to  his  room  in  the  hotel  and  there  demonstrated  to  them 
his  proposition.  He  squeezed  some  dough  through  a  sieve,  made 
it  into  a  cake,  baked  it  in  a  charcoal  oven,  and  then  served  it  to 
them  mth  sugar  and  cream.  In  a  self-complacent  manner  they 
informed  him  that  it  might  be  all  right  for  invalids,  but  that 
the  average  person  would  not  eat  that  baled  hay.  He  was  a 
man  without  money,  but  he  had  a  good  product.  Somebody 
with  a  vision  saw  it,  and  he  is  now  manufacturing  shredded 
w^heat  biscuit  at  Niagara  Falls,  and  you  all  know  the  result. 

In  the  city  of  Spring-field,  Massachusetts,  a  w^orld  cham- 
pion bicycle  rider,  suggested  the  possibility  of  having  bicycles 
run  by  motor,  and  was  called  a  day  dreamer.  But  at  last  he 
interested  some  parties,  and  now  he  has  one  of  the  largest  in- 
dustries in  the  country.  These  two  examples  show  that  no 
matter  what  the  man's  idea  is,  there  doubtless  may  be  some 
practical,  saleable  value  in  it,  for  you  never  can  tell  what  the 
public  will  buy.  And  yet,  on  the  other  hand,  you  have  to  w^atch 
out  for  the  visionary  patentholder,  who  has  an  article  which 
never  could  sell,  but  who  comes  to  you  and  wants  to  organize 
a  company  and  himself  with  no  business  ability  at  all,  to  be- 
come manager  of  it.  I  would  suggest  that  the  average  new  in- 
dustry be  tested  by  the  following  questions : 

1.  Is  the  article  which  they  manufacture  useful?    Is  there  a  demand  for 
it? 

2.  Has  the  company  proper  and  efficient  officers? 

3.  Is  the  company  capitalized  sufficiently  to  carry  on  the  business  in  a 
satisfactory  manner? 

4.  Has  it  a  clear  and  definite  business  policy? 

5.  Does  it  strive  for  a  high  perfection  in  manufactured  product? 

6.  Is  its  business  and  manufacturini?  or.2:anization  satisfactory,  and  has 
it  a  complete  system  of  accounting? 

These  facts  should  all  be  procured,  and,  furthermore,  a 
complete  report  from  Brad  street  and  Dun  should  be  had  as  to 
the  business  and  as  to  the  integrity  of  the  officers.  The  com- 
pany should  also  be  asked  to  place  in  the  hands  of  the  commit- 


82  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

tee  a  certified  auditor's  report  of  its  accounts  and  a  certified 
appraiser's  report  of  its  machinery  and  other  material  assets. 

The  question  should  also  be  carefully  considered  as  to  ex- 
actly Avhy  this  industry  wants  to  come  to  your  city.  Of  course, 
if  3  ou  are  soliciting  the  industry,  the  question  does  not  arise, 
but  if  the  industry  comes  to  you,  there  must  be  some  reason 
for  it,  and  there's  many  a  chance  for  an  ulterior  purpose  to 
creep  in  here.  If  the  industry  is  established  in  the  city,  all  of 
these  reports  and  facts  should  be  kept  carefully  on  hand  by  the 
secretary  for  reference  and  the  progress  of  the  industry  for  two 
or  three  years  recorded. 

With  the  approval  of  the  new  industry,  we  come  to  our 
fourth  and  last  step,  the 

Location  of  New  Industries 

In  the  first  place,  no  commercial  organization  can  consist- 
ently consider  itself  a  stock  promoting  organization.  It  may 
be  able  to  promote  nine  industries  and  have  them  successful, 
but  the  tenth  industry  might  fail  and  thus  spell  dissatisfaction 
and  ultimate  disorganization  to  the  commercial  body.  All  that 
the  commercial  organization  can  do  in  this  regard  is  to  endorse 
an  industry  highly,  and  say  to  its  members — "We  have  investi- 
gated this  industry  and  have  found  it  to  be  desirable  for  the 
city.''  But,  there  are  four  definite  business  methods  by  which 
a  commerce  body  may  locate  new  industries,  and  they  are  by 
forming  independent  companies  working  under  the  advisement 
of  the  board  of  directors  of  the  commercial  organization.  These 
four  methods  are : 

1.  The  Industrial  Holding  Company  Plan. 

2.  The  Industrial  Loan  Plan. 

3.  The  Real  Estate  Development  Plan. 

4.  The  Nursen^  Plan. 

The  Industrial  Holding  Company  Plan  is  brought  about  by 
organizing  a  holding  company  of  certain  citizens  of  the  commu- 
nity who  will  use  the  resources  of  the  company  for  the  purpose 
of  stimulating  old  and  new  industries  in  the  community.  The 
company  does  not  give  bonuses,  but  properly  invests  its  re- 
sources. The  company  is  organized  and  incorporated  for  the 
benefit  of  its  stock  holders  and  for  the  promotion  of  the  pros- 
perity of  the  community.  All  the  stock  is  subscribed  by  the 
citizens  of  the  municipality.    The  capital  of  this  company  should 


INDUSTRIAL  SUKVEY  OF  THE  CITY.  83 

be  large  enough  to  permit  the  compan}^  to  do  comprehensive 
work.  Under  the  genei*al  corporation  laws,  when  one-half  of 
the  stock  is  subscribed  the  company  may  do  business.  The 
company  can  be  formed  in  the  city  by  either  a  general  canvass, 
by  a  mass  meeting,  or  in  any  manner  that  seems  best  suited 
to  the  temperament  of  the  citizens. 

Now,  when  some  new  industry  has  been  investigated  and 
found  desirable,  it  is  brought  to  the  city,  and  it  is  necessary, 
let  us  say,  to  have  ?50,000  additional  capital.  The  directors  of 
the  industrial  holding  company  are  thoroughly  satisfied  that 
the  new  industry  is  a  good  investment;  they  call  upon  all  the 
stockholders  pro  rata  to  buy  stock  to  the  aggregate  sum  of 
$50,000  and  with  the  understanding  that  the  industrial  hold- 
ing company  shall  have  representation  on  the  governing  board 
of  the  new  industry.  In  this  manner,  |50,000  is  invested,  not 
given,  to  the  new  industry.  The  dividends  on  the  $50,000  are 
paid  to  the  treasurer  of  the  industrial  holding  company  and 
are  pro  rated  to  the  individual  stockholders  of  the  industrial 
holding  company  after  paying  any  incidental  expenses  for  the 
operation  of  the  said  industrial  holding  company.  In  organ- 
izing the  company  and  in  securing  stock,  it  is  well  to  bear  in 
mind  that  no  subscription  shall  be  called  for  until  the  new 
industry  is  endorsed  by  the  directors  of  the  industrial  holding 
compam^ ;  that  not  more  than  a  certain  percentage  of  the  capi- 
tal stock  shall  be  called  for  within  a  certain  period  of  time; 
and  that  no  subscription  shall  be  in  force  until  at  least  one- 
half  of  the  capital  stock  of  the  industrial  holding  company  has 
been  subscribed.  The  industrial  holding  company  should  be 
empowered  to  purchase  bonds  from  any  incoming  industry, 
which  it  endorses,  or  to  furnish  funds  on  long  time  loans,  to 
purchase  securities,  and  to  do  everything  necessary  to  the  loca- 
tion, establishment,  maintenance  and  operation  of  the  indus- 
trial enterprise.  The  industrial  holding  company  can,  if  it 
wishes,  organize  its  own  industries  and  operate  them  with  its 
own  capital.  The  secretary  of  the  commercial  organization 
should  be  secretary  of  the  industrial  holding  company. 

The  industrial  loan  plan  simply  involves  a  credit  or  en- 
dorsement of  loans  for  industries  which  are  in  need  of  addi- 
tional funds  for  the  larger  development  of  their  business.  This 
is  done  by  calling  a  mass  meeting  of  the  citizens  or  a  commit- 
tee meeting,  as  you  will,  and  organizing  a  loan  company.    The 


84  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

affairs  of  the  company  are  in  the  hands  of  three  or  more  trus- 
tees whose  duty  it  is  to  carefully  investigate  the  matter,  ascer- 
tain the  amount  of  loan  desired,  what  security  is  offered,  and 
the  general  merit  of  the  proposition.  If  the  trustees  approve, 
they  will  go  to  the  bank  in  which  the  loan  is  to  be  placed,  make 
out  the  notes  or  mortgages,  have  the  proper  officials  represent- 
ing the  industry  endorse  the  notes  or  sign  the  mortgages  and 
then  sign  the  papers  themselves  as  attorneys-in-fact  for  the 
signers  of  the  guarantee  fund.  The  banks  notify  the  trustees, 
at  the  same  time  they  notify  the  officials  of  the  industry  when 
payments  on  notes  or  mortgages  are  due.  In  case  of  loss,  the 
banks  notify  the  trustees,  who  in  turn,  call  upon  and  collect 
from  each  subscriber  his  share  of  the  loss.  The  applicants  are 
often  found  among  people  outside  of  banking  credit,  but  as  the 
risk  is  high,  the  loans  are  generally  kept  small. 

The  next  plan  is  the  real  estate  development  plan.  It  pro- 
vides that  a  group  of  citizens  may  get  together  and  open  up  a 
certain  tract  of  land  for  development  purposes,  offering  special 
inducements  to  industries  recommended  by  the  industrial  com- 
mittee of  the  board  of  trade  or  chamber  of  commerce  to  locate 
there.  The  plan  secures  an  industrial  fund  for  the  city  without 
calling  for  outright  subscriptions,  but  by  giving  real  value  for 
any  moneys  secured.  There  is  danger,  however,  under  this 
plan  that  the  real  estate  developers,  in  their  desire  to  make 
money,  will  let  any  industry  come  into  the  city,  and,  therefore, 
it  should  be  understood  that  no  industry  will  be  allowed  on  the 
tract  which  lias  not  been  thoroughly  investigated  and  approved 
by  the  industrial  committee  of  the  commercial  organization. 
The  advantages  of  this  plan  are  that  it  gives  the  municipality 
an  industrial  fund  in  real  property.  It  segregates  the  factory 
district  of  the  city;  it  stimulates  the  municipality  to  develop 
along  proper  city  planning  lines  as  regards  factories,  and  it 
offers  great  possibilities  as  regards  satisfactory  housing  condi- 
tions and  pleasant,  healthful  environment. 

The  last  plan  is  the  nursery  plan.  There  are  many  indus- 
tries which  are  too  small  to  occupy  large  plants,  but  which  will 
eventually  grow.  These  industries  should  all  be  housed  in  one 
building  known  as  the  Industrial  Building,  and  there  allowed 
to  incubate.  The  building,  of  course,  should  be  constructed  with 
good  railroad  facilities,  proper  lights,  air,  and  modern  manu- 
facturing requirements  and  conveniences.    A  great  many  cities 


INDUSTRIAL  SURVEY  OF  THE  CITY.  8."> 

have  already  constructed  such  buildings  and  find  no  difficulty 
at  all  in  renting  space  to  small  industries  which  are  investi- 
gated and  found  to  have  possibilities  of  future  growth. 

*         »         *  * 

To  summarize  briefly  then.  The  municipality  must  be 
properly  prepared  by  a  survey,  so  as  to  have  all  conditions  satis- 
factory for  procuring  new  industries.  New  industries  must  be 
solicited  by  either  the  indirect  method — through  advertising — 
or  by  the  direct  method — personal  and  individual  solicitation. 
All  industries  should  be  carefully  investigated  by  the  industrial 
committee,  and  if  recommended,  turned  over  to  the  industrial 
holding  company.  They  caii  then  be  properly  financed  and 
located,  but  if  there  is  no  industrial  holding  company,  they  can 
be  provided  for  by  the  industrial  loan  plan,  the  real  estate  de- 
velopment plan,  or  the  nursery  plan. 

There  is  every  reason  to  believe,  however,  that  the  indus- 
trial holding  company  plan  is  the  solution,  since  it  is  possible 
for  the  company  to  lend  credit  to  incoming  industries  by  finan- 
cing its  loans  in  the  company's  own  funds  either  through  the 
purchase  of  industrial  bonds  or  making  loans  outright. 

The  industrial  holding  company  plan  is  better  than  the 
loan  company  plan  because  its  subscribers  invest  and  secure 
dividends,  whereas  in  the  loan  company  plan,  merely  low  in- 
terest is  obtained.  The  risk  is  equal  in  both  plans.  An  indus- 
trial holding  company  can  also  handle  the  real  estate  develop- 
ment plan,  can  construct  a  building  for  infant  industries  and 
can  do  all  when  once  a  new  industry  is  found  desirable  for  the 
municipality. 

The  great  purpose,  or  purposes,  of  the  commercial  organiza- 
tion is  to  build  up  the  industries  of  the  city  by  the  most  economi- 
cal, efficacious  and  business-like  methods  possible.  And  every 
city,  citizen  and  member  will  praise  and  support  that  organiza- 
tion which  has  this  one  of  several  purposes  and  accomplishes 
definite  results. 

Some  may  say  that  the  commercial  organizations  should 
build  up  their  cities  and  let  the  industries  come  of  themselves, 
but  I  sincerely  feel  that  definite  action  should  take  place  in 
procuring  new  industries  and  that  when  all  is  said  and  done, 
the  commercial  organization  exists,  first  and  foremost,  for  the 
building  up  and  increasing  of  the  industrial  life  of  the  city. 


CHAPTER  IV. 

Agricultural  Activities 

Commercial  Organizations  and  the  Farming  Element 
By  H.  V.  EVA 

The  functions  of  a  commercial  organization  may  be  stated 
in  general  as  the  promotion  of  the  commercial,  industrial  and 
civic  welfare  of  the  community  it  is  organized  to  serve. 

The  question  is,  how  far  should  agricultural  development 
enter  into  carrying  out  these  functions?  There  can  be  but  one 
answer :  First,  all  things  come  from  the  ground.  There  have  been 
no  skeptics  in  the  history  of  the  world  on  the  truism  that  man 
must  eat  to  live.  A  community  also  must  eat  to  live,  and  the 
community's  food  supply  has  an  important  bearing  on  develop- 
ment. 

The  more  immediate  question  today  is  hoAV  far  should  the 
commercial  organization  enter  into  this  work?  Let  me  give  you 
two  different  viewpoints.  One  is  expressed  by  the  secretary  of 
one  of  the  most  efficient  organizations  in  the  country:  "It 
would  indeed  sound  strange  if  we  were  to  tell  you  that  as  an 
organization  we  do  not  devote  any  time  to  the  subject  of  agri- 
cultural development,  because^  all  of  our  prosperity  comes  from 
the  ground ;  but  as  a  matter  of  fact  we  do  not  have  a  committee 
on  agriculture,  and  we  have  never  felt  the  necessity  of  taking 
an  active  interest  in  this  subject.  This  perhaps  needs  an  ex- 
planation." The  explanation  is  that  he  thinks  the  agricultural 
college  in  his  state  is  very  satisfactorily  doing  the  work  of  im- 
proving agricultural  conditions. 

Another  executive  states  that  his  organization  was  not 
organized  for  agricultural  development.  It  was  organized  for 
the  purpose  of  advertising  the  city,  securing  new  indu*^tries, 
conventions  and  advancing  the  interests  of  the  city  generally 
so  far  as  possible.  However,  in  the  conduct  of  a  campaign  it 
learned  the  truth  that  a  prosperous  and  progressive  city  must 
be  backed  up  by  a  prosperous  and  progressive  farming  region. 
The  result  was  enthusiastic  and  effective  work  in  the  field  of 
agricultural  development. 


COMMERCIAL  ORGANIZATIONS  AND  THE  FARMINC;  ELEMENT.  87 

In  this  day  of  cooperation  and  interdependence  no  man,  no 
bnsiness,  no  community  may  stand  alone.  We  must  look  about 
us,  confer  with  and  work  with  our  neighbors  that  we  may  solve 
the  problems  that  touch  us  all.  Therein  lies  the  foundation  for 
commercial  organization  work  and  every  movement  in  which 
men  work  together. 

The  problems  of  the  farmer  and  the  city  business  men  are 
intimately  related.  The  problems  of  the  city  and  the  county 
surrounding  it  have  a  similar  relation.  The  commercial  organi- 
zation that  endeavors  to  confine  itself  to  the  problems  that  can 
be  seen  from  its  office  windows  is,  in  my  judgment,  making  a 
serious  mistake. 

Among  the  factors  entering  into  industrial  development 
is  the  cost  of  living.  In  the  family  of  the  wage  earner  food 
takes  a  greater  percentage  of  the  family  income  than  it  does  in 
the  family  of  the  average  salaried  man  or  business  man.  Food 
costs  have  a  greater  bearing  on  the  wages  of  mechanics  than 
on  the  salary  of  tlie  executive.  Accordingly,  the  man  with  capi- 
tal to  invest  considers  the  food  supply  and  its  effect  on  wage 
when  considering  a  location  for  his  factory. 

Every  city  that  pretends  to  be  a  distributing  center  must 
have  a  market.  A  city  is  large  and  important  in  proportion 
to  the  size  and  importance  of  its  distribution  area.  Within  the 
distribution  area  of  a  large  city  will  be  found  smaller  cities 
of  various  grades  of  size  and  importance,  each  with  its  own 
distribution  area — circles  within  a  circle.  Obviously,  the  pros- 
perity of  the  people  and  the  towns  within  its  distribution  area 
is  of  vital  importance  to  every  city.  If  its  own  food  supply  is 
not  involved — if  there  is  plenty  of  production  to  supply  it  with- 
out expensive  transportation,  it  still  may  turn  its  attention  to 
production  for  other  markets,  and  the  serving  of  those  markets 
so  as  to  bring  the  greatest  prosperity  to  the  producers. 

How  should  the  commercial  organization  show  its  interest? 
I  am  going  to  quote  here  the  experience  and  accomplishments 
of  one  organization.  In  this  particular  cit}^  some  twelve  years 
ago  a  commercial  club  was  organized.  At  that  time  everyone 
believed  that  the  city  was  surrounded  by  barren  waste.  Through 
the  whole  upper  part  of  the  state  the  lumberman  had  cut  his 
swath,  leaving  millions  of  acres  of  pine  stumps,  trees  he  scorned, 
tangled  brush  and  branches.  Underneath  was  a  soil  rich  in 
agricultural  resources,  but  few^  would  believe  it. 


88  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

For  several  years  the  commercial  club  talked  agriculture. 
It  called  upon  the  world  to  take  notice  of  the  rich  surroundings 
and  obtained  no  response.  Then  they  started  out  to  prove  their 
statements.  They  engaged  a  practical,  scientific  farmer  and 
made  him  agricultural  superintendent.  He  got  out  among  the 
few  farmers.  He  made  displays  at  county  fairs  and  land  shows. 
He  conducted  experiments.  He  interested  the  state  college  of 
agriculture  and  the  county.  It  gradually  climbed  in  the  esti- 
mation of  those  who  had  been  skeptics.  Today  its  position  is 
assured.  They  did  not  stop  when  they  had  proved  their  state- 
ments, but  went  to  the  state  legislature  and  obtained  an  appro- 
priation for  a  state  demonstration  school.  They  went  to  the 
legislature  again  and  obtained  the  passage  of  a  bill  empower- 
ing counties  to  make  appropriations  for  county  agents,  and  ap- 
propriating an  amount  from  which  the  state  would  make  similar 
appropriations  when  the  counties  had  qualified.  The  result  is 
that  this  state  now  has  35  county  agents  in  the  field. 

A  commercial  organization  should  most  emphatically  take 
an  interest  in  agricultural  development  in  the  country  around 
it.  The  degree  of  activity  should  be  based  upon  local  condi- 
tions. Study  your  county.  If  the  actual  work  of  instruction 
is  being  done  by  the  state  agricultural  college  or  some  other 
agency,  get  into  touch  with  it  and  see  if  there  is  not  something 
you  can  do  to  help.  Your  ability  to  deal  with  problems  of  road 
building,  the  straightening  out  of  marketing  tangles  and  the 
extension  of  farm  credits  is  far  ahead  of  the  ability  of  any  mere 
educational  agency.  Whether  your  problem  is  one  of  settle- 
ment, increased  production,  conservation  or  marketing,  you 
need  a  scientific  agriculturist  to  work  among  the  farmers. 

Agriculture  and  Commercial  Organizations 

*(EXTRACTS  FROM  A  COMMITTEE   REPORT) 

It  is  a  plain  and  self-evident  fact  that  there  are  very  few 

commercial  organizations  so  situated  that  they  cannot  do  great 

good  for  their  cities  and  communities  by  an  effort  to  help  solve 

some  of  the  many  problems  of  the  producers  of  farm  products. 

There  are  few  states  where  the  yearly  value  of  farm  products  is 

not  greater  than  that  of  all  its  manufactured  products,  and 

♦Committee: — W.  E.  Holmes,  Chairman;  Bruce  Kennedy,  H.  V.  Eva,  L. 
B.  Dunham,  Carl  J.  Baer. 


AGRICULTURE  AND  COMMERCIAL  ORGANIZATIONS.  89 

when  one  considers  that  agriculture  is  only  beginning  to  be  rec- 
ognized as  a  science,  the  modern  farmer,  both  as  a  scientist  and 
business  man,  it  is  easy  to  see  that  the  great  majority  of  com- 
mercial organizations  can  deal  with  no  more  vital  subjects  than 
those  presented  to  the  individual,  or  organization,  who  will 
study  the  needs  of  the  contiguous  rural  communities. 

Doubtless  every  commercial  secretary  in  the  country  ap- 
preciates, at  least  to  some  extent,  the  wonderful  work  that  has 
been  and  is  being  done  by  the  United  States  Department  of 
Agriculture  and  by  the  agricultural  colleges  of  the  various 
states;  but  the  most  casual  investigation  A\dll  show  that  in  a 
great  majority  of  the  communities  where  practical  work  is  be- 
ing done  along  the  line  of  educating  the  rank  and  file  of  farm- 
ers to  the  latest  and  most  scientific  ideas  the  initiative  has 
been  taken  by  the  business  men  of  the  towns,  only  a  compara- 
tively few  of  whom  are  land  owners. 

Especially  to  those  of  us  who  have  spent  some  years  on 
the  farm  the  reason  is  obvious;  but  the  fact  remains  that  the 
average  farmer  resents  the  insinuation  that  the  "town  man'^ 
can  tell  him  anything  about  farming,  forgetting  that  the  busi- 
ness world  is  filled  with  thousands  of  "farmer  boys"  who  have 
had  an  opportunity  to  study  and  to  observe  the  application  of 
modern  ideas,  men  who  can  see  w^here  their  fathers  failed, 
through  lack  of  instruction,  to  practice  methods  that  are  today 
revolutionizing  agriculture  and  adding  immeasurably  to  the 
wealth  of  the  country. 

Movement  for  Diversified  Farming 

A  movement  in  the  South  that  is  of  significance,  is  the 
campaigns  of  education  for  diversified  farming  supported  and 
fostered  by  commercial  organizations. 

For  a  great  many  years,  the  agricultural  energies  of  this 
section  have  been  devoted  to  growing  cotton  almost  exclusive- 
ly. As  a  result  of  the  one-crop  system,  the  soils  have  deterio- 
rated and  it  has  become  the  custom  to  buy  practically  all  food- 
stuffs from  other  states.  It  is  said  that  in  Alabama,  during  the 
year  1914,  the  people  sent  money  to  other  states  for  foodstuffs 
?6,000,000  more  than  the  total  value  of  the  state's  cotton  crop. 
This  money  purchased  corn,  oats,  wheat,  hay,  potatoes,  and 
other  foods,  despite  the  fact  that  it  has  been  demonstrated  that 


90  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

these  crops  can  be  grown  abundantly  in  Alabama  and  the  other 
states  of  the  South. 

The  necessity'  for  growing  more  foodstuffs  was  forced  upon 
the  minds  of  the  farmers  by  the  sharp  drop  in  the  price  of  cot- 
ton/folloAving  the  outbreak  of  the  war  in  Europe.  The  market 
fell  from  around  fourteen  cents  to  six  cents  and  farmers,  who 
had  planned  to  buy  foodstuffs  from  the  West  wdth  cotton  at 
fourteen  cents,  had  to  suffer  the  consequences  of  their  own 
folly.  They  could  not  pay  their  debts  and  had  no  money  to 
buy  corn,  hay  and  potatoes,  which  they  should  have  grown. 

It  is  no  light  task  to  undertake  changes  in  lifetime  customs 
of  a  people,  but  this  work  was  shouldered  by  several  commer- 
cial organizations  of  the  South  and  reports  indicate  surprising- 
results  already.  Whirlwind  campaigns  were  made  in  Texas, 
Arkansas  and  Alabama.  Scores  of  speakers,  men  of  expert 
knowledge,  were  sent  throughout  these  states.  Their  work  Avas 
given  enthusiastic  support  by  the  newspapers  and  business  men 
and  was  followed  by  carefully  prepared  pamphlets  and  book- 
lets treating  of  grain  growing,  cattle,  hogs,  sheep  and  chickens. 
In  mam^  counties  permanent  organizations  were  perfected. 

Another  result  of  this  campaign  of  education  is  shown  in 
the  fact  that  packing  houses,  flour  mills,  and  grain  elevators 
are  being  established  at  hundreds  of  commercial  centers  in  the 
South.  All  over  the  South  farmers  are  organizing  for  coopera- 
tion in  growing  and  marketing  grain,  livestock  and  vegetables. 
Commercial  organizations  have  blazed  the  way  for  these  new 
conditions. 

A  distinct  service  has  been  performed  by  chambers  of  com- 
merce in  the  way  of  developing  and  improving  rural  life  and  in 
cultivating  closer  relations  between  the  city  man  and  his  country 
neighbor.  Rural  communities  have  been  organized  for  social 
development,  excursions  have  been  made  into  the  country  by 
business  men,  farmers  have  been  invited  to  join  commercial 
bodies,  and  rest  rooms  and  market  exchanges  have  been  pro- 
vided at  commercial  centers. 

But  the  people  of  the  east  and  the  middle  and  central  west 
where  land  values  are  high,  are  also  Avaking  up  to  a  realization 
that  the  farmers  must  change  their  methods.  A  prominent 
official  of  the  United  States  Department  of  Agriculture  recent- 
ly said  to  a  member  of  your  committee : 

"If  the  present  high  land  values  in  many  sections  of  the 


i 
AGRICULTURE  AND  COMMERCIAL  ORGAXIZATIONS.  91 

country  are  to  be  maintained  it  will  be  only  by  the  introduction 
of  improved  methods  of  agriculture,  and  the  tirst  lesson  to  learn 
is  to  make  the  farm  fully  support  the  family,  after  which  the 
farmer  can  begin  to  figure  on  profits.  It  is  almost  a  crime  for 
any  farmer  to  buy  his  ham  and  bacon,  or  potatoes  and  butter 
in  town,  but  thousands  of  them  are  doing  it." 

There  certain!}-  is  food  fOr  reflection  in  the  statement  of 
Bert  Ball,  secretary  of  Crop  Improvement  Committee,  Chicago, 
that  in  no  community  Avhere  an  agricultural  adviser  is  at  work 
was  the  initiative  taken  by  the  farmers ;  it  always  has  and  prol>- 
ably  always  will  remain  with  such  organizations  as  we  have 
the  honor  to  represent  to  lead  in  the  campaign  of  education 
which  must  precede  the  employment  of  such  experts. 

The  Farm  a  Factory 

There  are  so  many  pliases  and  angles  to  the  subject  under 
discussion  that  one  hardly  knows  which  is  the  most  important 
and  interesting;  but  if  one  were  to  attempt  to  sum  up  briefly 
the  statement  contained  in  the  many  replies  received  to  the 
questionaire  sent  by  your  committee  to  two  hundred  secre- 
taries, in  all  parts  of  the  country,  it  w  ould  probably  be  in  these 
words :  "The  coi^imercial  organization  w^hich  does  not  concern 
itself  with  local  agricultural  problems  and  conditions  is  asleep 
at  the  swdtch." 

"AYe  consider  every  farm  in  our  trade  territory  as  a  fac- 
tory, producing  materials  absolutely  indispensable  to  the  life 
of  the  human  race,"  says  one  secretary.  "It  is  a  singularly 
fortunate  fact  that  the  farmer  produces  no  ^finished  products,' 
in  other  Avords,  that  with  the  exception  of  vegetables  and  fruits 
(which  the  average  farmer  does  not  produce  to  sell)  and  of 
eggs  and  hay,  practically  everything  grown  on  the  farm — corn, 
wheat,  rye,  barley,  cotton,  cane,  hogs,  cattle  and  sheep — must 
come  to  the  city  as  *raw  materials,'  to  be  prepared  for  consump- 
tion, these  various  processes  furnishing  employment  to  an  in- 
finitely larger  army  of  laborers  than  was  required  to  produce 
the  raw  materials." 

A  bulletin  recently  issued  by  one  of  the  great  harvester 

manufacturing  companies  says: 

The  opportunity  of  the  town  lies  in  the  country.  The  country  can  get 
along  without  the  town,  but  no  town  ever  has  been  or  ever  will  be  perma- 
nently prosperous  where  the  land  is  poor.  The  town  is  built  on  farm  prof- 
its; on  what  farmers  produce  in  excess  of  their  home  needs.    Towns  are  the 


92  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

natural  evolution  and  outgrowth  of  necessity — places  to  store  and  distribute 
the  world's  surplus  products  through  the  channels  of  commerce.  There  is' but 
one  road  to  permanent  city  building — that  road  leads  to  the  farm.  Business 
is  so  sympathetic,  so  sensitive  to  crop  production,  that  the  forecast  of  a  poor 
wheat  or  corn  crop  affects  the  markets  of  the  world.  When  the  harvest  fields 
smile,  to\\Tis  wax  fat,  and  factories  increase  the  pay  roll.  Corn,  wheat,  and 
hay,  beef,  pork  and  poultry — these  are  the  soil  builders,  the  home  builders,  the 
builders  of  great  cities. 

The  old  fashioned  chamber  of  commerce,  with  its  cash  bonuses  and  free 
factory  sites,  is  rapidly  passing  away.  Instead  of  grabbing  business  from 
each  other,  towms  are  beginning  to  look  to  the  country,  out  into  the  fields  of 
growing  corn  and  wheat  and  hay.  Here  lies  the  opportunity — for  the  great 
city,  strange  as  it  may  -seem,  is  out  in  the  country,  hidden  in  the  fertility  of 
the  soil.  A  successful  hay  campaign  will  bring  factories  to  the  town.  Hay 
means  beef  and  pork,  which  beckon  the  packing  house  and  storage  plant. 
More  corn  means  cereal  mills,  glucose  factories,  starch  factories.  Flour  mills 
locate  in  wheat-producing  sections.  Creameries  follow  the  dairy  cow,  and  the 
truck  patch  calls  for  the  canning  factory. 

Let  us  have  more  chambers  of  agriculture  and  commerce  and  fewer  "com- 
mercial clubs."  Let  us  create  wealth  from  the  opportunities  at  home,  and 
not  subtract  it  from  other  communities 

"No  country  can  be  richer  than  its  lands,''  saj^s  another 
secretary,  who  adds :  "From  the  soil  comes  our  food  and  cloth- 
ing; all  other  human  needs  are  subordinate  to  these.  Food  is 
the  chief  material  of  life — its  production  is  the  most  important 
occupation.  In  the  hard  school  of  experience  we  are  slowly 
learning  the  lesson  of  real  business  economy — the  greatest  les- 
son of  all  time — that  of  feeding  ourselves.  Should  commercial 
organizations  interest  themselves  in  these  problems?  !» should 
sav  thev  should.'' 


The  Commercial  Organizations'  Relations  With 
the  "Back  Country" 

By  HON.  D.  F.  HOUSTON 

It  was  my  fortune  not  many  months  ago  to  have  an  op- 
portunity to  speak  to  the  chamber  of  commerce  of  one  of  our 
thriving  cities.  I  had  made  some  study  of  its  problems  and 
progress.  I  had  certain  views  as  to  its  relatioris  to  the  sur- 
rounding country  and  the  direction  of  progress.  Before  speak- 
ing, I  asked  if  some  one  Avould  not  tell  me  what  made  the  city, 
and  the  answer  came — "the  back  country" — and  this  I  knew 
to  be  true.  I  then  innocently  observed  that,  of  course,  as 
prudent  business  men,  they  had  taken  steps  to  inform  them- 


COMMERCIAL  ORGANIZATIONS  AND  "BACK  COUNTRY."  93 

selves  of  the  needs  and  problems  of  the  back  country,  of  the 
best  ways  to  foster  a  balanced  agriculture  and  to  promote  its 
well-being;  that  their  bankers  had  intelligent  views  as  to  the 
credits  which  should  be  extended  and  for  what ;  that  they  had 
taken  pains  to  see  that  good  roads  radiated  into  tlie  country 
districts;  and,  that  they  had  assisted  the  fanners  in  solving 
their  difficult  problems  of  marketing  and  distribution.  I  then 
asked  if  they  would  tell  me  what  had  been  done;  and  a  deep 
and  significant  silence  pervaded  the  room.  This  is  one  of  many 
experiences  and  could  be  duplicated  in  many  parts  of  the  Union. 
That  there  should  be  a  change,  or  that  the  change  which  is 
beginning  to  appear  should  be  rapidly  made,  you  will  agree. 

What,  then,  is  to  be  done?  Obviously,  first  of  all,  a  new 
attitude  must  be  assumed  and  a  sense  of  responsibility,  even 
on  the  basis  of  enlightened  selfishness,  must  develop.  Business 
men  and. business  organizations  must  join  the  other  great  ele- 
ments in  society  and  become  effective  students  of  agricultural 
problems  and  efficient  instruments  in  bettering  rural  life.  The 
problems  are  exceedingly  numerous  and  sufficiently  difficult  to 
tax  the  best  thought  of  the  best  men  of  the  Nation. 

With  all  the  progress  made — and  the  progi^ess  has  been 
rapid  and  vast — there  continue  to  be  many  interesting  and 
urgent  problems  of  production.  There  is  much  to  be  done  for 
soil  improvement,  for  plant  and  animal  breeding,  for  the  eradi- 
cation of  diseases,  for  improvement  of  cultural  methods,  for 
better  farm  management,  and  for  better  utilization  of  labor 
throughout  the  year.  The  Nation  is  losing  hundreds  of  millions 
of  dollars  through  diseases  which  can  be  controlled  or  eradi- 
cated, and  under  better  conditions  the  meat  supply  of  the  Na- 
tion can  be  greatly  increased  with  reasonable  profits  to  the  pro- 
ducers and  distributors.  That  this  is  essential  may  be  sharply 
indicated  by  the  mere  statement  that  while  in  the  last  fifteen 
years  we  have  gained  24,000,000  of  people,  the  number  of  our 
beef  animals  has  decreased  6,000,000,  sheep  10,000,000,  and 
hogs  have  increased  only  11,000,000. 

Not  less  important,  and  even  more  urgent,  are  problems  of 
distribution.  It  is  one  thing  to  produce  commodities  and  an- 
other thing  to  distribute  them  economically  and  profitably. 
There  can  be  little  doubt  that  in  this  phase  of  his  enterprise 
the  farmer  has  been  at  a  marked  disadvantage.  He  has  been 
without  banking  machinery  to  serve  his  particular  needs  as 


04  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

the  merchant  and  manufacturer  are  served ;  without  established 
standards  for  staples  for  use  in  market  transactions  and  with- 
out systematic  knowledge  of  the  markets  themselves;  without 
ability  to  command  the  requisite  transportation  facilities ;  and 
without  the  requisite  contact  with  the  machinery  of  distribu- 
tion. No  one  can  estimate  the  losses  arising  because  of  these 
defects.  Many  drawbacks  exist  because  the  farmers'  opera- 
tions, as  a  rule,  are  on  a  small  scale.  The  average  cultivated 
farm  in  the  Nation  is  75  acres,  and  in  some  sections  only  35 
acres.  This  points  to  one  conclusion,  that  cooperation  for  not 
only  marketing,  but  also  for  production,  is  essential  in  the  in- 
terest of  the  producer  as  well  as  of  the  consumer. 

But  even  if  each  farmer  were  an  efficient  producer  and 
community  arrangements  were  developed  for  efficient  market- 
ing, the  problems  would  not  have  been  solved.  There  is  much 
that  individuals  and  groups  of  individuals  may  do  in  every 
community.  In  fact,  they  must  always  do  the  larger  part. 
Self-help  Avill  be  the  rule  in  the  future  as  it  has  been  in  the 
past.  Nevertheless,  there  are  certain  undesirable  and  unjust 
conditions  which  no  amount  of  private  effort  can  overcome. 
Such  conditions  legislation  alone  can  correct. 

In  the  field  of  production,  national  and  state  agencies  for 
a  number  of  years  have  been  rendering  effective  service,  but, 
to  the  second  half  of  agriculture  involved  in  distribution,  no 
systematic  attention  had  been  given  or  provision  made  up  to 
two  and  a  half  or  three  years  ago.  Even  the  economists  of 
the  Nation  had  shown  a  singular  indifference  concerning  prob- 
lems in  this  field.  They  had  been  busily  studying  the  econom- 
ics of  industry,  banking,  transportation,  public  debts,  inter- 
national payments,  corporation  finance,  economic  theory,  and 
the  economic  systems  of  the  medieval  and  ancient  world,  but 
a  mere  handful  had  shown  any  appreciation  of  the  difficulties 
which  vexed  the  six  million  farmers  of  the  Nation  in  spite  of 
their  knowledge  of  their  strivings  against  them.  In  the  minds 
even  of  the  few  there  were  grave  doubts  as  to  the  lines  that  in- 
quiries should  folloAv  and  as  to  the  possibility  of  securing  re- 
sults within  a  reasonable  time. 

Some  Recent  Federal  Legislation 

But  things  have  moved  rapidlj^  An  office  of  markets  to 
make  investigations  in  all  directions  was  organized  in  1913, 


COMMERCIAL  ORGANIZATIONS  AND  "BACK  COUNTRY."  95 

was  rapidly  extended,  and  today  possesses  a  large  trained  per- 
sonnel with  a  budget  of  approximately  a  million  dollars.  It 
has  accumulated  a  great  mass  of  valuable  information,  and  has 
extended  aid  to  farmers  and  communities  in  many  directions 
and  particularly  in  the  tield  of  the  marketing  of  perishables 
through  a  market  news  service.  Certain  of  the  investigations 
of  the  office  will  require  time.  Many  facts  must  be  secured  and 
conclusions  reached  before  effective  action  can  be  taken.  But 
certain  things  needed  to  be  done.  It  was  not  necessary  to  await 
a  long  course  of  inquiry  to  begin  doing  them.  The  present 
generation  needed  service.  A  program  was  marked  out  and 
has  been  completed,  in  large  measure,  by  the  enactment  of 
singularly  carefully  framed  legislation.  The  national  banking 
law  was  so  amended  as  to  permit  banks  to  lend  money  within 
safe  limits  on  farm  mortgages  and  to  recognize  the  peculiar 
needs  of  the  farmer  by  giving  his  paper  a  maturity  period  of 
six  months.  The  Federal  Farm  Loan  Act  was  passed,  creating 
a  banking  system  to  reach  intimately  into  the  rural  districts, 
to  operate  on  terms  suited  to  the  farmer's  needs  under  sympa- 
thetic management,  to  introduce  business  methods  into  farm 
finance,  to  systematize  and  to  reduce  the  cost  of  handling  of 
farm  loans,  to  place  upon  the  market  mortgages  which  will  be 
safe  investments  for  private  funds,  to  attract  into  agricultural 
operations  a  fair  share  of  the  capital  of  the  Nation,  and  to  lead 
to  a  reduction  in  interest  rates.  Then  there  were  enacted  the 
Cotton  Futures  Act,  providing  standards  for  cotton,  for  the 
supervision  of  the  operations  of  the  exchanges,  and  for  placing 
the  trading  in  cotton  on  a  sounder  basis ;  the  Grain  Standards 
Act,  to  establish  standards  for  grain,  to  remedy  certain  in- 
justices and  undesirable  practices;  and  the  Warehouse  Act, 
providing  for  licensing  bonded  warehouses  and  making  pos- 
sible an  easily  negotiable  warehouse  receipt,  the  better  stor- 
age of  farm  products  and  the  more  orderly  distribution  of 
farm  products.  Not  less  important  for  farm  operations  is  the 
Federal  Aid  Road  Act,  excellently  conceived  to  safeguard  the 
expenditure  of  ?1G0,000,000  arising  under  the  act  over  the  five- 
year  period,  and  certain  to  secure  better  results  from  the 
1280,000,000  or  the  equivalent  now  annually  expended  in  the 
Nation  for  good  roads. 

Preceding  these  measures  Avas  the  Agricultural  Extension 
Act,  one  of  the  most   significant  educational   measures  ever 


96  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

adopted  bv  any  government.  Its  terms  you  are  familiar  with. 
Like  the  road  act,  it  provides  for  a  very  significant  thing,  for 
cooperation  between  expert  state  and  federal  agencies.  It 
undertakes  to  bring  home  to  the  people  the  best  scientific  and 
practical  knowledge  bearing  on  production  and  distribution. 
It  provides  for  the  most  effective  way  of  disseminating  knowl- 
edge, the  old  way,  through  personal  contact.  It  will  reach  its 
full  development  in  1922-23,  when  there  will  be  expended  under 
its  term  from  state  and  federal  funds  alone  |8,680,000  in  the 
direct  education  of  the  farmer  and  his  family,  and  probably 
from  other  federal  and  state  community  funds  from  three  to 
four  millions  more.  With  increased  local  support  this  will 
permit  the  placing  in  each  of  the  2,850  rural  counties  of  the 
Nation  two  county  agents,  in  most  cases  a  man  and  a  woman, 
with  the  assistance  of  district  supervisors,  all  working  with 
the  aid  and  direction  of  the  great  forces  of  the  land  grant  col- 
leges and  the  Department  of  Agriculture. 

What  Organized  Work  Involves 

I  have  indicated  these  problems,  this  legislation,  and  this 
machinery  for  the  very  simple  reason  that  if  you  undertake  to 
cooperate  in  agriculture,  you  must  know  what  you  are  coop- 
erating in  and  for,  the  conditions  under  which  work  must  be 
done,  the  machinery  through  which  it  must  be  accomplished, 
and  to  suggest  to  you,  and  through  you  to  business  men,  that 
these  things  must  be  assiduously  studied  if  efforts  are  to  be 
effective.  Obviously,  you  must  know  the  problems  and  the 
forces  if  you  are  to  work  intelligently.  One  of  the  great  prob- 
lems confronting  us  is  how  to  educate  the  business  man  and 
secure  his  effective  participation.  The  department  and  the 
land  grant  colleges  are  frequently  embarrassed  by  ill  consid- 
ered and  unwise  proposals  from  individuals  and  business  or- 
ganizations ;  and  not  infrequently  friction  and  ill-feeling  is  en- 
gendered. The  business  man  is  occupied  with  his  immediate 
concern  and  no  effective  plan  has  been  devised  for  reaching 
him.  The  metropolitan  press  has  not  yet  fully  conceived  the 
part  it  might  play  in  this  great  field.  Agricultural  activities 
are  important  but  furnish  little  of  the  stuff  commonly  regard- 
ed as  news,  and  it  is  seldom  that  you  find  on  staffs  of  city 
papers  men  either  interested  in  these  matters  or  possessed  of 
the  requisite  training  to  discuss  them.     Is  there  not  suggested 


COMMERCIAL  ORGANIZATIONS  AND  "BACK  COUNTRY."  97 

here  a  liigh  opportunity  for  the  useful  direction  of  your  ef- 
forts and  influence?  It  is  especially  essential  that  the  busi- 
ness world  should  have  at  least  a  sympathetic  appreciation 
of  the  difficulties  under  which  the  farmers  of  the  Nation  labor 
and  a  basis  for  forming  an  intelligent  judgment  on  construc- 
tive and  remedial  economic  and  legislative  proposals.  One  of 
the  discouraging  things  is  the  resistance  by  many  business  in- 
terests, based  clearh'  on  ignorance,  to  greatly  needed  and  sound 
legislation.  Many  of  the  discussions  in  the  metropolitan  press 
and  in  the  trade  journals  of  such  proposals  are  frequently,  to 
say  the  least,  not  creditable  to  them  or  helpful  to  their  read- 
ers. I  might  refer,  for  instance,  to  current  discussion  of  the 
Farm  Loan  Act  and  the  Federal  Aid  Road  Act.  I  have  seen 
very  few  adequate  discussions  of  either  of  these  measures  in 
the  larger  dailies,  and  have  seen  much  that  was  misleading 
and  distorted.  I  need  not  suggest  that  if  we  are  to  have  gov- 
ernment by  public  opinion,  facts  must  be  presented,  be  fairly 
interpreted  and  correct  conclusions  courageoutsly  faced,  no 
matter  where  they  may  lead  or  what  prejudices  they  may  run 
across. 

What  Commercial  Organizations  Can  Do 

Looking  at  the  matter  more  narrowly,  there  are  many 
things  that  commercial  organizations  aild  business  men  may 
well  consider.  Each  urban  community  might  well,  in  coop- 
eration Avith  leaders  in  the  surrounding  districts,  undertake  a 
careful  surve}^  for  the  purposes  of  better  production  and  better 
organization.  It  may  assist  in  the  securing  of  a  good  county 
agent  where  there  is  none  and  effectively  cooperate  with  him. 
Business  men  and  business  organizations  may  help  work  out 
better  wholesale  and  retail  markets  for  farm  products,  farmers' 
community  buildings  may  be  planned  and  established,  and  good 
roads  radiating  into  the  back  country  may  be  promoted  to 
mutual  advantage.  Bankers  in  many  parts  of  the  country  may 
be  brought  to  see  that  by  their  wise  use  of  credit  will  be  de- 
termined the  question  whether  or  not  the  rural  districts  shall 
have  a  well-balanced,  prosperous  agriculture.  Not  a  few  of 
them  are  learning  the  lesson,  and  in  some  states  the  banking 
associations  have  intelligently  and  effectively  organized  state 
committees,  composed  of  a  member  from  each  county,  for  the 
betterment  of  rural  life.  A  peculiar  opportunity  is  afforded 
for  the  sympathetic  and  constructive  assistance  of  the  banker 

4 


98  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

and  the  business  man  in  connection  with  the  inauguration  of 
the  Farm  Loan  Act  and  the  formation  of  local  associations,  and 
in  the  furtherance  of  cooperation  among  farmers  for  the  bet- 
terment of  production  and  marketing. 

Another  thing  you  in  particular  can  do.  Lack  of  stability 
and  uniformity  in  agricultural  conditions  is  one  of  the  explana- 
tions not  only  of  unsatisfactory  financial  arrangements  but 
also  of  inadequate  marketing  facilities.  Even  after  we  have 
done  the  best  we  can  for  marketing  and  finance,  there  will  be 
difficulties  growing  out  of  rapid  agricultural  changes,  of  shift- 
ing of  population,  in  short,  out  of  the  continued  pioneering  of 
the  Nation.  Certain  results  expected  from  financial  or  mar- 
keting studies  and  legislation  can  be  secured  only  with  a  stable 
and  balanced  agriculture.  Some  of  the  most  pathetic  failures 
arise  in  regions  where  farmers  have  settled  under  alluring  in- 
ducements. Not  infrequently  they  find  novel  conditions  and  dif- 
ficulties of  production,  but  more  frequently  difficulties  of  mar- 
keting through  lack  of  planning  or  through  remoteness  from 
markets.  Much  of  the  responsibility  for  such  misfortune  lies 
at  the  door  of  the  real  estate  agent  and  of  the  town  which  is 
overanxious  to  build  itself  up.  Obviously,  some  sort  of  re- 
sponsible oversight  and  direction  would  be  desirable  and  help- 
ful, and  I  can  think  of  no  agents  better  adapted  to  render  as- 
sistance in  this  direction  than  the  membership  of  this  body. 
False  advertising  and  lack  of  provision  or  of  previous  planning 
is  shortsighted  in  this  field  as  in  others,  and  in  the  long  run 
defeats  the  objects  and  ambitions  of  the  advertisers. 


CHAPTER  V. 
Traffic  and  Transportation  Bureaus 

By  FRANK  BARRY 

Transportation  is  a  vital  factor  in  commerce  and  produc- 
tion. This  fact  is  now  recognized  by  all  commercial  organiza- 
tions of  importance  which  conduct  transportation  bureaus  in 
connection  with  their  activities. 

Prior  to  1887  the  railroads  of  the  country  were  operated 
without  governmental  regulation.  Rates  charged  were  gener- 
ally based  upon  "what  the  traffic  would  bear  and  move.''  Rules 
and  regulations  were  dependent  only  upon  th^  volition  of  the 
carrier  and  the  influence  that  the  shipper  could  exert.  As  a 
result,  preferential  rates  and  discriminations  were  rife. 

The  enactment  of  the  law  to  regulate  commerce,  February 
4,  1887,  was  intended  to  establish  the  right  of  the  shipping 
public  to  reasonable  charges  for  transportation,  equal  rates 
to  all  and  adequate  service  by  common  carriers.  For  a  brief 
period  beneficial  effect  resulted.  Time  and  the  courts,  however, 
modified  the  operation  of  the  law  and  nullified  the  powers 
that  were  supposed  to  have  been  vested  in  the  Interstate  Com- 
merce Commission. 

After  persistent  effort  by  organized  shipping  interests  of 
the  country,  continuing  for  about  four  years,  the  Interstate 
Commerce  Law  was  substantially  amended  on  June  30,  1906, 
and  subsequently  on  June  18,  lt)10,  so  as  to  give  the  commis- 
sion definite  powers  of  regulation. 

With  this  effective  governmental  regulation  of  common 
carriers  came  a  realization  of  the  advantage,  if  not  necessity, 
of  a  traffic  organization  or  bureau,  as  an  integral  part  of  the 
commercial  association,  to  guard  the  lawful  rights  and  promote 
the  interests  of  the  shipper. 

Prior  to  1006  but  few  business  organizations  conducted 
traffic  bureaus.  Since  that  time  there  has  been  a  large  and 
rapid  increase  in  their  number.  Today  practically  every  pro- 
gressive commercial  and  manufacturing  organization  of  im- 
portance has  its  transportation  department. 

99 


100  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

At  first  the  railroads  did  not  look  with  approval  upon  these 
associations,  deeming  their  existence  and  action  an  undue  in- 
terference with  the  business  of  the  carriers.  Gradually  this 
feeling  has  been  overcome,  until  most  railroads  consider  the 
industrial  traffic  bureau  a  valuable  assistant  and  auxiliary  to 
their  work,  affording  cooperation  in  transportation  matters 
which  could  not  otherAvise  be  obtained,  and  saving  the  rail- 
roads a  vast  amount  of  labor  and  expense  in  furnishing  neces- 
sary information  required  by  shippers. 

The  evolution  of  the  traffic  bureau  has  been  gradual,  and 
accomplished  upon  lines  adapted  to  the  ideas  and  necessities 
of  many  communities  and  individuals. 

Business  organizations  in  the  larger  communities  have 
generally  provided  strong,  efficient  traffic  bureaus  under  the 
management  of  capable  men,  who  usually  have  had  long  ex- 
perience in  transportation.  Cities  of  200,000  or  more  popula- 
tion, requiring  extensive  service,  are  able  to  afford  the  neces- 
sary financial  support  for  a  strong  traffic  bureau,  while  cities 
of  smaller  population  have  been  obliged  to  "cut  their  garment 
according  to  the  cloth"  and  feel  that  they  are  not  justified  in 
employing  a  high  salaried  manager  with  clerical  assistance 
necessary  to  afford  comprehensive  service. 

The  cost  of  maintenance  of  a  traffic  bureau  in  about  120 
cities  of  the  country  having  a  population  of  100,000  or  more, 
varies  from  about  |5,000  to  $40,000  per  annum,  and  averages 
110,000. 

Owing  to  the  varying  conditions  and  the  methods  adopted 
for  maintenance  of  traffic  bureaus,  also  the  differences  in  na- 
ture of  the  service  required,  it  would  be  difficult  to  classify 
or  draw  comparisons  between  the  various  associations  operat- 
ing in  commercial  and  manufacturing  centers. 

In  some  of  the  larger  cities,  the  traffic  bureau  is  main- 
tained entirely  at  the  expense  of  the  business  association,  and 
all  members  are  entitled  to  the  entire  service  afforded  by  the 
bureau.  In  others,  the  expense  of  maintenance  is  borne  in 
part  by  the  members  who  most  need  the  service,  who  pay  for 
its  support  annual  dues  of  from  |50  to  f  100  per  year,  or  are 
willing  to  pay  a  larger  assessment,  as  a  contribution,  and  the 
deficit  in  cost  of  operation  is  made  up  by  appropriation  from 
the  parent  organization. 

In  other  communities  the  traffic  bureau  is  made  self-sus- 


TRAFFIC  AND  TUAN>I'UKTATION  BI  RE^UR  '    '  UOl 


taining,  its  expense  being  borne  entirely  by  the*  membership, 
and  its  accounts  being  kept  separate  from  those  of  the  parent 
organization. 

There  are  almost  as  many  different  methods  of  financing 
traffic  bureaus  as  there  are  associations  with  which  they  are 
connected. 

The  service  afforded  by  traffic  bureaus  differs  according  to 
the  desires  and  needs  of  the  community.  This  service  may  be 
classified  as  individual  in  character,  or  for  the  benefit  of  the 
member,  and  in  general,  affecting  the  interests  of  the  commu- 
nity. 

It  is  customary  for  all  freight  bureaus  to  maintain  a 
tariff*  file,  to  afford  service  in  the  quotation  of  rates  and  routing 
of  shipments,  tracing  of  delayed  shipments,  advice  with  regard 
to  claim  matters,  dcHrisions  of  the  Interstate  Commerce  Com- 
mission, the  state  commission,  decisions  of  the  courts  and  ad- 
vice regarding  many  questions  that  arise  in  traffic  matters. 
Switching  rates  and  rules,  electric  line  express  and  parcel  post 
rat^s,  passenger  service,  rates  and  rules,  steamship  rates  and 
service,  as  well  as  export  facilities,  are  also  within  the  scope  of 
the  traffic  bureau's  work. 

Other  traffic  bureaus  undertake  to  check  and  audit  freight 
bills,  though  this  has  been  found  impracticable  in  many  in- 
stances Avhere  attempted,  owing  to  the  volume  of  the  service, 
the  expense  of  employment  of  necessary  clerical  force,  and  the 
unprofitable  results.  Where  this  service  is  afforded  there  is 
usually  imposed  an  additional  charge  beyond  membership  dues, 
based  upon  the  fee  of  about  two  cents  per  expense  bill  checked, 
or  a  commission  of  from  25  per  cent  to  50  per  cent  for  the 
amount  of  overcharge  discovered  and  collected. 

Some  bureaus  undertake  to  collect  for  members'  claims  for 
overcharge  and  loss  and  damage.  Others  act  in  such  matters  in 
an  advisory  capacity. 

Most  traffic  bureaus  handle  complaints,  conduct  or  assist 
in  classification  and  rate  adjustments  in  behalf  of  members,  and 
perform  a  very  valuable  and  highly  appreciated  service  in  this 
field.  Tariff  issues  are  carefully  scrutinized  and  members  kept 
informed  as  to  changes  that  may  interest  them. 

Traffic  bureaus  in  the  larger  communities  perform  a  very 
useful  function  in  conducting  cases  affecting  the  interests,  of 
the  community  before  governmental  agencies,  the  Interstate 


»    ^'  102^  '^'    •    EF^tCTENCY  AND  CHARACTERISTIC  ACTIVITIES. 

'Commerce  Commission,  the  state  commission,  and  local  au- 
thorities. They  also  strive  to  promote  local  transportation 
facilities  such  as  through  merchandise  car  loading,  the  enlarge- 
ment of  local  stations,  the  conduct  of  stations,  teaming,  electric 
railway  and  motor  truck  service. 

Many  of  the  larger  industrial  concerns  throughout  tlie 
country  now  conduct  a  traific  bureau  in  their  own  interest,  and 
Avhile  such  concerns  are  frequently  members  of  the  traffic 
bureau  attached  to  the  local  manufacturing  or  industrial  as- 
sociation, the  details  of  necessary  traffic  service  are  attended 
to  by  their  own  bureau. 

Traffic  bureaus  and  departments  throughout  the  country 
have  generally  become  allied  and  cooperate  with  each  other 
through  membership  in  the  National  Industrial  Traffic  League, 
which,  through  its  various  committees,  and  united  action  in 
transportation  matters,  has  accomplished  many  benefits  for  the 
shipping  public. 


Transportation  Problems — How  Shall  They  Be 

Dealt  With? 

By  D.  P.  CHINDBLOM 

The  commercial  organization  that  is  ambitious  to  exert  the 
greatest  possible  influence  in  the  community  cannot  afford  to 
delegate  these  important  questions  to  another  body  or  to  com- 
pete with  it. 

The  commercial  organization  has  in  its  membership,  if  it 
is  truly  representative,  tlie  very  men  who  must  back  the  traffic 
organization  that  is  entitled  to  recognition  as  representative  of 
the  community.  This  is  an  unnecessary  duplication  and  often 
results  in  a  divided  community.  The  commercial  organization 
should  be  able  to  deal  with  these  questions  in  a  manner  that 
will  make  the  other  agency  unnecessary,  avoid  the  duplication 
and  unify  the  community. 

There  is  need  for  handling  these  questions  in  a  construc- 
tive way  and  on  a  sound  economic  basis.  Selfish  aims  and  tem- 
porary advantages  bring  no  permanent  result  that  is  beneficial 
to  the  community.  This  does  not  argue  that  an  exclusive  traffic 
organization  is  not  capable  of  such  a  view.    A  real  commercial 


TRANSPORTATION  PROBLEMS.  103 

organization,  properly  advised,  will  deal  with  every  question  in 
that  manner. 

The  fact  that  so  many  other  problems  of  the  commercial 
organization  that  arise  cannot  be  properly  handled  without 
proper  information  on  transportation  is  another  reason  for 
handling  transportation  questions  within  that  body.  We  have 
in  mind  the  pertinent  example  of  the  location  of  new  indus- 
tries. 

Finally,  the  reasons  for  a  separate  traffic  organization  are 
really  tAvo :  The  failure  of  the  commercial  organization  to  take 
up  this  Avork,  or  its  failure  to  truly  represent  the  community 
and  get  its  support.  The  latter  situation  is  a  real  challenge  to 
the  existence  of  the  commercial  organization. 

Relation  of  the  Traffic  Department  to  the  Organization 

A  discussion  of  how  to  deal  with  transportation  problems 
within  the  commercial  organization  would  not  be  complete 
without  a  consideration  of  the  relation  that  the  traffic  depart- 
ment should  have  to  the  entire  organization.  This  question  only 
arises  when  there  is  such  a  separate  department  in  charge  of  a 
traffic  manager,  commissioner,  etc.,  and  merits  careful  atten- 
tion. 

On  this  question  let  us  speak  frankly  in  the  interest  of 
the  cooperation  that  must  exist  in  order  to  get  the  best  results. 
The  traffic  manager  who  measures  up  to  the  requirements  is 
a  man  of  special  training  and  technical  information  gained 
by  years  of  experience  and  application  to  the  study  of  these 
questions.  Naturally,  the  more  qualified  he  is  the  more  he  is 
certain  to  have  very  definite  opinions  on  the  problems  that 
come  to  him.  The  secretary,  however,  is  the  executive  re- 
sponsible for  the  general  administration  of  the  work  of  the 
entire  organization  and  supervision  of  every  department. 

What  is  often  needed  is  mutual  recognition  of  the  qualifi- 
cations and  position  occupied  by  the  other.  The  traffic  man- 
ager can  get  much  assistance  in  securing  support  for  his  sug- 
gestions by  keeping  his  secretary  informed  and  by  working 
with  him.  At  the  same  time  the  secretary  is  in  a  much  better 
position  to  successfully  direct  the  work  of  the  organization, 
secure  necessary  data,  and  fortify  himself  in  dealing  with  his 
officers  and  membership  by  consulting  with  the  traffic  man- 
ager.   This  proposition  is  workable. 


104  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Cooperation  with  the  Carriers 

Cooperation  with  the  carriers  brings  up  one  of  the  impor- 
tant and  difficult  questions  for  the  organization.  It  is  a  mat- 
ter 01  regret  that  there  has  been  too  little  cooperation  in  the 
past  and  too  much  antagonism.  The  fault  has  been  a  mutual 
one.  Shippers  have  not  always  been  willing  to  admit  when 
they  were  wrong.  On  the  other  hand,  the  carriers  have  not  been 
as  frank  as  they  might  have  been. 

The  commercial  organization  should  endeavor  to  secure  an 
increasing  desire  on  the  part  of  the  carriers  to  inform  the  ship- 
per and  confer  with  him,  and  to  develop  a  greater  willingness 
on  the  part  of  the  shipper  to  be  convinced  that  the  carrier  is 
sometimes  right. 

It  Avill  always  be  a  fact  that  the  commercial  organization 
will  be  recognized  as  more  definitely  representing  the  shipper 
than  the  carrier,  because  the  carrier  serving  many  communi- 
ties cannot  have  that  intimate  interest  in  a  particular  commu- 
nity that  the  shipper  has.  It  is  the  duty  of  the  commercial  or- 
ganization to  see  that  this  local  interest  of  the  shipper  is  exer- 
cised in  a  fair  and  reasonable  way. 

When  an  agreement  cannot  be  reached  nothing  has  been 
lost  by  frankness  and  discussion.  If  there  is  a  willingness  to 
cooperate,  conflicting  views  can  be  presented  to  the  properly 
authorized  tribunal  for  decision  in  a  much  better  spirit  of  honest 
difference  of  opinion. 

We  are  told  by  both  shippers  and  carriers  that  nothing  is 
gained.  The  answer  is  that  nothing  is  lost,  and  certainly  noth- 
ing is  accomplished  by  refusing  to  cooperate. 

What  the  carriers  can  accomplish  by  securing  the  coopera- 
tion of  shippers  has  been  recently  demonstrated  in  the  matter 
of  car  efficiency.  Without  tariff  restrictions  voluntarily  a  large 
increase  in  the  heavier  loading  of  cars  has  been  secured. 

Appointment  of  the  Transportation  Committee 

To  properly  deal  with  transportation  problems  the  appoint- 
ment of  the  transportation  or  traffic  committee  is  an  important 
matter.  The  members  ought  to  be  business  men  big  enouglv  to 
see  the  problems  of  the  carrier  as  Avell  as  those  of  the  shipper — 
men  not  afraid  to  acknowledge  when  the  carrier  is  right,  and 
with  courage  to  insist  upon  a  solution  of  their  problems  when 
thev  are  risrht. 


TRANSPORTATION  PROBLEMS.  105 

It  is  not  necessary  or  helpful  that  representatives  of  the 
transportation  companies  should  serve  on  these  committees.  As 
a  practical  matter,  submitting  any  problem  to  a  committee  so 
constituted  means  that  the  shipping  members  and  the  carrier 
members  will  confer  among  themselves  and  the  meetings  of 
the  committee  will  only  be  joint  conferences.  We  may  as  well 
be  frank  al)out  the  situation,  appoint  the  committee  of  repre- 
sentatives of  the  shippers  and  then  have  all  the  joint  confer- 
encces  desired,  in  fact,  insist  upon  them. 

Educational  Work 

The  work  of  education  is  an  important  one  and  should  in- 
clude the  general  public,  as  well  as  the  membership  and  those 
employees  of  the  membership  who  directly  handle  their  trans- 
portation mattei-s.  It  is  deemed  helpful  to  accept  every  oppor- 
tunity offered  to  reach  the  public  outside  of  the  organization 
in  an  etfort  to  get  as  wide  as  possible  a  dissemination  of  infor- 
jnation.  The  opportunities  for  doing  this  with  transportation 
problems  are  not  as  numerous  as  with  more  popular  subjects, 
nor  do  they  lend  themselves  as  well  to  this  method  of  handling. 

The  real  work  is  witli  the  membership.  It  is  important  that 
they  be  informed  as  to  what  your  problems  are  and  the  solu- 
tion proposed.  This  is  accomplished  through  your  publica- 
tions, circulars  and  the  public  meetings  of  your  organization. 
Particularly  in  public  meetings  there  is  room  for  more  discus- 
sion of  transportation  questions. 

There  is  an  important  educational  work  to  be  done  with 
the  transportation  committee.  The  committee  must  be  free 
to  reach  its  own  conclusions  if  it  is  to  have  a  real  part  in  the 
work.  The  members  of  the  committee,  however,  can  not  be 
expected  to  have  sufficient  information  on  these  matters  and  it 
is  up  to  the  traffic  manager  to  keep  the  committee  informed. 
If  this  view  is  impressed  upon  the  member  of  the  staff  handling 
transportation  problems  it  will  be  helpful  to  successful  work. 
The  committee  should  be  given  the  necessary  data  and  sugges- 
tions, but  the  idea  of  education  of  the  committee  should  not  be 
overlooked.  There  are  many  matters  of  local  and  general  trans- 
portation conditions  that  are  not  necessarily  subjects  for  action 
by  the  committee,  but  of  which  its  members  should  be  informed. 

A  phase  of  education  through  the  commercial  organization 
in  transportation  matters  that  is  more  generally  recognized  is 


106  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

the  work  done  with  traffic  managers  and  shipping  clerks  of 
individual  firms  in  the  community.  In  some  organizations  only 
the  shipping  clerks  are  reached  and  in  others  both  groups.  In 
the  purely  educational  work  of  this  character  we  are  trying 
out  the  experiment  of  including  representatives  of  the  carriers. 
Questions  are  brought  up  for  discussion  and  we  have  had  the 
benefit  of  getting  the  views  of  both. sides  expressed  to  mutual 
advantage. 

The  topics  for  discussion  with  the  traffic  managers  are 
necessarily  different  from  those  taken  up  with  the  shipping 
clerks.  The  traffic  managers  discuss  rate  adjustments,  han- 
dling of  tariff  files,  preparation  of  claims,  rulings  of  the  Inter- 
state Commerce  Commission,  etc. 

With  the  shipping  clerks  we  have  covered  in  detail  such 
questions  as  the  proper  description  of  commodities,  packing, 
marking  and  billing  of  shipments,  principles  of  routing,  etc., 
emphasizing  the  relation  of  these  matters  to  proper,  prompt 
and  safe  delivery  and  the  assessment  of  correct  transportation, 
charges.  Many  shippers  and  their  shipping  clerks  do  not  ap- 
preciate the  importance  of  these  simple  matters  to  a  determina- 
tion of  the  cost  of  shipping,  nor  the  extent  to  which  their  ship- 
ping methods  set  at  naught  their  best  advertising  and  salesman- 
ship efforts. 

This  kind  of  education  is  important  because  it  prevents 
trouble  and  that  should  be  the  purpose  of  the  commercial  or- 
ganization. Proper  transportation  facilities,  rates  and  service 
may  be  available  and  not  intelligently  used. 

Examples  of  the  points  emphasized  follow : 

Describing  a  commodity  by  a  trade  name  not  contained  in  the  freig-bt 
classification  which  may  result  in  a  higher  rating.  We  had  actual  illustra- 
tions of  that  being  done. 

Failure  to  fully  describe  the  contents  of  a  box  by  omitting  some  article 
taking  the  highest  rate  of  any  in  the  box,  thus  violating  the  law  and  being 
subject  to  penalty  if  it  should  be  discovered. 

Giving  a  description  of  an  article  without  designating  the  state  of  manu- 
facture, whether  a  crude  or  other  than  crude  commodity  where  that  infor- 
mation is  necessary,  omitting  to  state  whether  liquid  or  dry,  which  some- 
times makes  a  difference. 

Using  the  term  box,  barrel,  crate  or  bag  indiscriminately. 

Shipping  articles  as  a  complete  article  when  they  could  be  separated,  or 
shipping  them  set  up  when  they  could  be  knocked  down,  causing  excess 
charges. 

Failing  to  remove  old  marks  from  boxes  resulting  in  shipment  being 
forwarded  to  wrong  destination. 


TRANSPORTATION  PROBLEMS.  107 

Omitting  the  name  of  the  county  when  there  are  two  towns  or  cities  of 
the  same  name  in  the  same  state. 

Routing  in  a  manner  that  does  not  take  advantage  of  the  cheapest  route. 

The  above  illustrations  indicate  the  variety  and  practical 
nature  of  these  questions.  These  are  matters  of  everyday  ship- 
ping transactions.  The  number  of  claims,  the  overcharges,  the 
unnecessary  correspondence,  the  friction  caused,  are  not  theo- 
retical. They  are  actually  happening  right  along.  Where  pos- 
sible to  do  so  we  have  given  actual  cases.  We  have  also  used 
the  stereopticon  in  si  lowing  the  condition  of  packages  due  to 
improper  packing,  use  of  old  cases,  or  failure  to  properly  close 
a  box.    This  kind  of  work  is  carried  on  by  many  organizations. 

Specific  Services  Rendered 

The  specific  services  rendered  in  the  regular  work  of  the 
department  are  simply  stated  but  cover  a  very  wide  field.  These 
services  divide  themselves  into  two  general  classes,  specific 
service  for  the  individual  shipper  and  the  service  for  the  com- 
munity as  a  whole. 

Speaking  of  the  former,  first  attention  may  be  called  to 
the  giving  of  specific  information  in  answer  to  inquiries.  These 
questions  include  rates,  routing,  classification  rules  and  descrip- 
tions, what  to  do  in  some  particular  case  of  a  shipment  lost^ 
damaged  or  delayed,  handling  of  claims,  etc. 

Answering  these  questions  requires  the  maintenance  of  a 
more  or  less  extensive  tariff  file  of  the  steam  and  electric  rail- 
roads, and  of  boat  lines,  decisions  of  the  Interstate  Commerce 
Commission  and  state  commission,  rulings  of  courts  and  con- 
siderable other  similar  information. 

These  questions  are  often  complicated  and  difficult  to 
answer.  They  require  for  a  proper  ans'wer  not  only  informa- 
tion but  a  large  measure  of  diplomacy.  Many  of  these  questions 
come  to  the  traffic  department  of  the  commercial  organization 
as  a  last  resort.  The  traffic  manager  must  be  fair  and  honest  in 
his  judgment,  ready  to  insist  upon  the  rights  of  the  shipper,  but 
Avilling  to  tell  the  shipper  when  he  is  in  error.  Many  of  these 
difficulties  arise  from  a  failure  on  the  part  of  the  shipper  to  do 
the  right  thing  in  the  first  place  and  lack  of  information  as  to 
how  to  file  his  claim  for  any  loss  sustained. 

Examples  of  how  some  of  these  matters  must  be  handled 
may  be  given  as  illustrative: 


108  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Shipper  cialle<I  up  and  complained  because  the  carrier  liad  requested  copy 
of  the  original  invoice  on  a  shipment  where  that  was  tlie  proper  evidence  of 
the  value  <yt  the  shipment.  He  wanted  to  know  if  he.  was  obliged  to  furnish 
it.  He  was  asked  how  else  he  proi)osed  to  satisfj*  the  carrier  of  the  amount 
of  the  claim.  He  sitate<l  that  the  invoice  did  not  show  the  amount  he  was 
entitled  to  because  he  had  g:iven  a  lump  sum  in  his  claim,  part  of  which  was 
an  extra  amount  added  for  the  trouble  of  preparing  the  claim.  He  was  told 
very  promptly  that  this  was  not  a  legitimate  item. 

A  shipper  routed  several  cars  of  freight  via  a  line  over  which  a  through 
rate  was  in  effect  to  destination.  The  cars  were  loaded  on  the  line  of  another 
carrier  by  the  shipper  who  had  a  private  sidetrack.  It  was  intended  that  the 
car  should  move  in  switching  service  to  the  line  over  which  routed.  Shipper, 
however,  delivered  the  bill  of  lading  to  the  switching  line  without  anj^  further 
directions.  That  line,  therefore,  took  a  haul  to  a  junction  point  with  the  line 
specified  in  the  routing.  The  through  rate  did  not  apply  that  way.  However, 
there  was  a  lower  combination  via  another  junction  than  that  via  which  the 
shipments  moved.  In  this  case  the  shipper  had  to  be  told  that  he  had  made 
an  error  in  delivering  the  bill  of  lading  to  the  switching  line  without  any 
further  directions  and  that  this  line  was  justified  in  taking  a  haul.  The 
railroad,  however,  was  told  that  it  must  not  apply  the  combination  which  was 
charged  hut  the  lower  combination. 

A  shipper  forwarded  two  shipments  on  the  same  day  to  the  same  destina- 
tion, one  by  express  to  insure  its  delivery  that  day,  and  the  other  by  freight 
to  make  delivery  by  the  next  morning,  the  purpose  being  to  get  a  portion  of 
the  goods  to  the  customer  that  day  to  carry  him  along  until  the  balance  should 
arrive  in  the  morning  and  at  the  same  time  not  pay  express  charges  on  more 
than  a  portion  of  the  shipment.  Express  company  did  not  make  delivery  until 
the  next  day  and  after  the  freight  shipment  had  been  delivered.  Shipper  re- 
fused to  pay  express  charges. '  He  claimed  he  had  net  received  express  •serv- 
ice. Shipper  had  to  be  advised  that  while  it  was  true  that  the  express  com- 
pany had  failed  to  make  proper  delivei-y,  as  a  matter  of  law  he  would  be 
obliged  to  pay  the  charges. 

Shipper  received  a  shipment  of  a  commodity  sold  by  weight.  In  weighing 
the  shipment  on  scales  in  his  warehouse  he  discovered  that  there  was  a  con- 
siderable loss  and  filed  claim.  Cariier  claimed  the  loss  was  due  to  evapoira- 
tion  of  moisture.  The  matter  was  taken  up  with  us  and  we  secured  scale 
weights  of  the  custom  house,  this  being  an  import  shipment  upon  which  duty 
was  paid.  Using  these  weights  and  deducting  the  iK>ssible  shrinkage  we  in- 
sisted upon  payment  of  claim.  The  carrier  had  agreed  to  make  only  a  par- 
tial settlement.  We  secured  practically  full  settlement  on  the  basis  of  the 
figures  submitted. 

Cases  of  this  kind  could  be  multiplied  showing  how  the 
traffic  manager  must  endeavor  to  determine  each  case  on  its 
merits.  The  specific  services  rendered  the  community  are  not 
as  numerous  as  those  rendered  the  individual,  but  they  often 
involve  a  great  deal  more  and  are  of  the  utmost  importance. 

The  larger  communities  generally  confine  their  work  to 
these  community  problems,  giving  information  in  a  limited 
Avay,  and  only  advising  with  membei*s  on  claims  and  other 
such  matters.     The  ^mailer  communities,  on  the  other  hand, 


TRANSPORTATION  PROBLEMS.  109 

emphasize  the  specific  services  to  the  individual  to  a  much 
greater  extent.  In  most  organizations  there  is  a  tendency 
toward  extending  these  specific  services  as  required.  No  rule 
can  be  fonnulated  to  govern  the  policy  in  this  respect.  Local 
conditions  and  the  demands  of  the  membership  must  determine 
this  question.  In  handling  these  problems  the  organization 
should  guard  against  this  work  deteriorating  into  mere  collec- 
tion of  claims.  The  work  should  be  conducted  on  a  broad  basis 
as  genuine  traffic  service  and  with  a  view  of  preventing  the  re- 
currence of  errors  that  can  be  avoided. 

Under  the  heading  of  the  services  to  the  community  come 
all  of  the  important  questions  of  protecting  a  community  in  its 
relative  adjustment  of  rates  and  service  as  against  competing 
centers,  improving  and  extending  local  facilities,  securing  sup- 
port for  the  passage  of  necessary  state  and  federal  statutes 
and  i)reventing  the  passage  of  unnecessary  and  unwise  laws. 

When  these  questions  come  up  the  community  that  is  rep- 
resented will  get  its  viewpoint  considered  wliether  before  com- 
missions or  carriers.  It  is  not  always  the  things  that  are  se- 
cured in  these  proceedings  that  are  of  the  greatest  importance, 
but  what  is  prevented  may  be  as  important.  Locally  the  ex- 
tension of  switching  arrangements,  additions  to  freight-house 
facilities  and  similar  matters  should  be  given  attention. 

Illustrations  of  the  effect  of  rate  adjustments  could  be  re- 
ferred to,  but  I  desire  to  emphasize  just  one  point.  A  discrimi- 
nation of  only  a  few  cents  per  hundred  pounds  amounts  to  a 
considerable  amount  in  total  for  a  community  in  the  course  of 
a  year.  However,  it  is  not  only  that  but  the  fact  that  business 
may  seek  other  communities  that  must  be  considered. 

Without  discussing  the  merits  of  the  particular  case  which 
may  be  familiar  to  many  of  you,  I  have  in  mind  an  instance 
where  an  effort  was  made  to  divide  a  certain  defined  rate  terri- 
tory and  secure  the  application  of  a  lower  basis  of  rates  to  a 
portion  of  it.  That  this  action  would  have  been  favorable  to 
the  one  portion  and  a  disadvantage  to  the  other  is  apparent 
witliout  argument,  whatever  the  actual  result  may  have  been 
because  of  other  considerations.  A  case  was  decided  some  time 
since  in  which  a  rate  adjustment  to  a  community  of  not  many 
cents  per  hundred  pounds  gave  to  that  community  the  full 
benefit  of  certain  power  developments  which  had  been  largely 
offset  by  the  previously  existing  adjustment. 


110  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

In  certain  instances  of  commodities  that  are  particularly 
responsive  to  the  rate  situation,  the  territory  of  distribution  is 
almost  entirely  controlled  by  it.  In  these  matters  the  services 
of  a  trained  traffic  official  with  a  knowledge  of  the  general 
rate  situation  throughout  the  country  and  its  development  is 
essential. 

The  Small  Community  vs.  the  Large  City 

There  is  a  great  difference  in  the  application  of  the  methods 
referred  to  in  the  community  organization  that  employs  a 
traffic  official  and  the  organization  where  the  secretary  must 
handle  these  problems.  Every  organization  that  can  find  a 
way  to  do  so  should  secure  the  services  of  someone  familiar 
with  traffic  work.  There  is  no  other  real  answ^er.  With  a  view 
of  bringing  the  subject  up  for  discussion,  however,  I  will  at- 
tempt to  make  a  few  suggestions  that  may  be  helpful  to  the 
secretary  in  dealing  with  these  problems. 

The  first  suggestion  is  that  the  secretary  should  be  a  close 
student  of  a  standard  traffic  publication.  Much  information 
on  other  subjects  is  gained  in  that  way  and  much  can  be  ob- 
tained tlirough  that  source  by  transportation  subjects  provided 
the  publication  consulted  is  one  that  covers  current  events. 

Many  small  communities  have  some  industry  that  has  a 
traffic  manager  or  another  official  more  or  less  familiar  with 
transportation  matters.  Draft  him  into  the  service.  Keep  in 
touch  with  the  local  railroad  representatives  and  encourage 
them  to  consult  with  you  and  inform  you  of  changes. 

By  developing  a  habit  on  the  part  of  your  members  of 
bringing  to  you  their  problems  and  giving  them  intelligent  in- 
vestigation, a  great  deal  of  information  will  be  obtained.  In 
investigating  these  matters  discuss  them  with  other  sliippers, 
with  representatives  of  the  carriers,  form  the  acquaintance  of 
your  neighbor  organization  that  has  a  traffic  official;  he  will 
be  glad  to  assist  to  a  reasonable  extent;  you  will  get  more 
^ut  of  this  than  you  expect.  This  kind  of  investigation  Avill 
bring  out  some  of  the  real  problems  of  your  community.  You 
will  probably  find  a  number  of  members  having  the  same  diffi- 
culty and  that  will  lead  jou  to  sometliing  that  needs  attention. 
A  strong  transportation  committee  of  men  who  come  in  touch 
with  these  matters  in  their  own  business  will  develop  much  in- 
formation in  a  discussion  of  these  problems. 

The  question  has  been  asked  what  could  be  accomplished 


TRANSPORTATION  PROBLEMS.  Jll 

by  the  employment  of  a  railroad  rate  clerk  in  the  organization. 
For  the  routine  matters  of  answering  many  of  the  inquiries 
made  and  furnishing  the  secretary  with  information,  such  an 
assistant  can  be  of  much  use.  Care  should  be  exercised  in 
getting  someone  intelligent  enough  to  get  the  organization 
viewpoint.  There  are  some  excellent  traffic  men  who  lack  this 
requisite  of  organization  training  and  who  would  not  be  success- 
ful in  this  work. 

The  more  important  the  city,  the  more  important  its  prob- 
lems and  the  necessity  for  a  high-grade  man,  but  there  are  many 
communities  where  the  organization  is  sufficiently  strong  and 
the  needs  of  the  community  important  enough  to  warrant  se- 
curing the  services  of  a  traffic  official  if  the  members  could 
only  be  made  to  see  the  benefits. 

Cooperation  With  Other  Organizations 

There  are  questions  that  are  not  strictly  local  and  that 
should  be  handled  through  cooperation  with  other  organiza- 
tions. In  this  connection  I  wish  to  refer  to  the  one  national 
organization  which  has  the  support  of  commercial  organiza- 
tions, namely,  the  National  Industrial  Traffic  league.  It  has 
in  its  membership  the  traffic  officials  of  many  of  the  commer- 
cial organizations  of  the  country.  This  organization  has  been 
very  helpful  to  organizations  that  have  no  traffic  off*icials 
through  answers  to  inquiries  submitted  to  its  headquarters 
and  through  the  information  contained  in  its  circulars  and 
the  printed  proceedings  of  its  meetings. 

It  has  carried  cooperation  with  the  carriers  to  the  extent 
that  it  is  frequently  in  conference  with  committees  and  repre- 
sentatives of  the  American  Railway  Association.  This  rail- 
way association  and  the  league  have  been  recognized  as  the 
national  representatives  of  shippers  and  carriers  by  the  Inter- 
state Commerce  Commission. 

Conclusion 

The  Chamber  of  Commerce  of  the  United  States  sent  out 
auite  a  complete  questional  re  as  to  the  traffic  bureaus  in  the 
different  organizations  in  its  membership.  The  result  of  tlus 
investigation  Avas  published  and  distributed  in  pamphlet  form. 
It  is  worthy  of  your  careful  reading. 

Particular  points  emphasized  in  this  paper  are: 


112  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Necessity  for  commercial  organization  viewpoint  in  deal- 
ing with  transportation  problems. 

Importance  of  transportation  problems  to  the  organiza- 
tion. 

The  commercial  organization  the  unit  in  the  community, 
and  the  traffic  bureau  a  department  of  the  organization. 

K^asons  why  these  problems  should  be  dealt  with  Avitliin 
the  commercial  organization. 

Relation  of  traffic  department  to  the  organization  as  a 
whole. 

Cooperation  with  the  carriers. 

Personnel  of  the  transportation  committee. 

Actual  handling  of  transportation  problems,  (a)  Educa- 
tional work,     (b)   Specific  services  rendered. 

1.  To  the  individual. 

2.  To  the  community. 

Suggestions  for  handling  these  problems  in  an  organiza- 
tion that  has  no  traffic  official. 

Cooperation  with  other  organizations. 


CHAPTER  VI. 
Retail  Trade  Activities 

Organization  Service  for  Retailers 
By  LEE  H.  BIERCE 

In  discussing  this  topic  one  condition  must  be  kept  in  mind 
and  that  is  the  fact  that  in  the  smaller  cities  practically  the 
entire  organization  is  built  around  the  retail  merchants  and 
those  closely  associated  with  them;  while  in  the  larger  cities 
the  retailers  fonii  but  a  committee,  bureau  or  department  of 
the  organization.  In  the  smaller  communities  even  the  secur- 
ing of  new  industries,  good  roads,  regulation  of  charities,  the 
betterment  of  train  schedules,  etc.,  are  retail  activities.  In  the 
larger  organizations  these  activities  are  handled  by  separate 
committees  or  bureaus  far  removed  from  retail  interests  and 
are  never  looked  upon  as  retail  activities. 

In  the  general  cycle  of  merchandising  there  are  four 
groups  of  business  interest  involved :  The  producer  of  the  raw 
product,  the  manufacturer,  the  wholesaler  and  the  retailer. 
To  illustrate :  In  the  manufacture  of  breakfast  foods  we  have 
the  man  who  raises  the  grain,  the  manufacturer  of  the  food, 
the  wholesale  grocer  and  the  retail  grocer.  Should  the  retail 
grocer  fail  in  business  he  owes  his  bank  and  the  wholesaler; 
should  the  wholesaler  fail  he  owes  the  manufacturer,  and  should 
the  manufacturer  fail  he  is  indebted  to  the  producer  of  the  raw 
product.  The  reverse  of  the  situation  is  not  true.  The  pro- 
ducer is  never  indebted  to  the  manufacturer;  the  manufactur- 
er does  not  owe  the  wholesaler,  and  the  wholesaler  never  owes 
the  retailer.  Therefore,  the  most  important  man  in  modern 
merchandising  is  the  retailer,  for  upon  his  success  depends  the 
entire  success  of  all  the  other  groups.  The  retailer  should  be 
tbp  strongest  mentally,  financially,  and  in  every  other  way. 
He  should  be  the  big  man  of  the  community,  the  one  who  leads 
in  all  matters  of  civic  pride  and  activity.  However,  we  know 
this  is  not  the  case  and  that  men  of  small  means,  limited  educa- 
tion and  limited  aspirations  drift  into  retail  merchandising 

113 


114  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Therefore,  it  becomes  necessary  for  the  banker,  the  wholesaler 
and  the  manufacturer  to  do  a  lot  of  thinking  for  the  retailer; 
it  is  necessary  for  them  to  solve  the  retailer's  problems  for  him. 
In  other  words  the  commercial  organization  finds  more  to  be 
done  for  the  retailer  than  for  any  other  class  of  membership. 

Dependency  of  Retailer 

Again,  the  retailer  is  dependent  upon  the  community  for 
his  very  existence.  He  is  dependent  upon  better  conditions  in 
the  community  for  better  conditions  in  his  business  and  the 
development  and  growth  of  the  community  for  a  development 
or  enlargement  of  his  business.  Then  he  is  the  one  man  who 
should  be  more  concerned  over  the  future  progress  and  pros- 
perity of  the  community  which  he  serves  than  any  other  class  of 
membership  in  the  commercial  organization.  He  should  pay 
more  and  work  harder.  As  an  illustration,  permit  me  to  say 
that  one  per  cent  of  the  furniture  manufactured  in  Grand  Rap- 
ids is  sold  at  retail  in  that  city;  a  wholesale  drug  house  there 
has  several  thousand  customers  but  only  seventy  of  them  are 
located  in  Grand  Rapids.  Therefore,  the  furniture  manufac- 
turer and  the  wholesale  druggist  are  less  concerned  about  the 
future  development  of  the  city  than  the  retailer  w'ho  disposes 
of  all  his  merchandise  to  the  citizens  of  the  very  community 
which  he  serves.  Whether  the  retail  merchant  of  your  city  is 
the  one  Avho  pays  the  most  for  his  membership  and  is  the  mem- 
ber who  is  the  most  active  in  the  organization  to  make  your 
city  a  bigger,  busier  and  better  one  may  remain  an  unanswered 
question.  Nevertheless,  the  fact  still  remains  that  he  is  the 
man  you  do  the  most  thinking  for ;  he  is  the  man  you  work  the 
hardest  for  and  are  the  most  concerned  about. 

Whether  the  service  rendered  for  the  retailer  by  your  or- 
ganization is  handled  by  the  secretary,  a  separate  executive  or 
a  fully  oraganizd  bureau  is  a  condition  which  depends  largely 
upon  the  size  of  the  organization  and  the  city  served  and  is  of 
little  moment  at  this  time.  We  are  proceeding  on  the  assump- 
tion that  there  is  either  a  bureau,  department  or  committee  or- 
ganized for  the  purpose  of  considering  the  problems  and  activi- 
ties of  the  retailers  and  that  this  committee  is  in  session  waiting 
to  be  told  what  to  do.  Some  of  the  principal  activities  of  prac- 
tically all  commercial  organizations,  activities  of  interest  prin- 
cipally to  the  retailers,  are  as  follows : 


ORGANIZATION  SERVICE  FOR  RETAILERS.  115 

Activities  of  Interest 

(1)  The  investigation  and  endorsement  of  charitable  and  social  welfare 
organizations;  the  selling  of  tickets  and  soliciting  of  advertising  should  be 
regulated  and  controlle<l  by  the  commercial  organization  for  the  benefit  of 
the  retailers  principally.  While  all  classes  of  membership  are  interested  in 
this  particular  activity,  the  burden  of  supix)rting  these  institutions  falls 
heaviest  upon  the  retailer  and  if  your  retailers  are  awake  they  will  see  to 
it  that  this  work  is  efficiently  done  by  the  commercial  organization  and  in 
turn  they  should  support  this  work  the  strongest. 

(2)  Every  city  of  five  thousand  population  or  over  can  and  should  sup- 
port a  credit  rating  buieau  for  the  U!?e  of  the  retail  merchants.  In  tlie  small- 
er communities  it  is  possible  to  build  up  and  hold  together  a  commercial 
organization  by  maintaining  a  commercial  rating  bureau.  This  one  activity 
is  sufficient  excuse  for  a  commercial  organization  to  exist.  In  some  of  the 
larger  cities  these  bureaus  are  operated  privately.  It  is  the  general  opinion 
that  this  condition  is  satisfactory  provided  the  private  concern  operates  effi- 
ciently and  in  close  hannony  with  the  retail  interests.  If  nor,  then  the  com- 
mercial association  should  take  over,  perfect  and  maintain  the  rating  bureau. 
While  such  a  bureau  is  operated  in  the  interests  of  the  retailers,  its  moral 
influence  upon  the  entire  community  should  not  be  underestimated. 

(3)  The  securing  of  conventions  is  of  vital  interest  to  the  retail  mer- 
chants. This  is  a  work  that  can  be  best  handled  by  the  commercial  organ- 
ization. In  the  larger  cities  separate  bureaus  are  maintained  for  this  par- 
ticular activity  and  in  some  cities  separate  organizations,  such  as  the  Detroit 
Tourist  and  Convention  Bureau,  exist.  The  securing  of  conventions  is  con- 
ceded to  be  one  of  the  very  best  forms  of  municipal  advertising  from  which 
both  direct  and  indirect  benefits  are  derived  and  the  retailers  are  the  mem- 
bers of  the  commercial  association  most  concerned  and  frequently  this  activ- 
ity is  made  one  of  the  retail  merchants'  division. 

(4)  Spring  and  fall  openings  and  fashion  or  style  shows  are  rapidly 
developing  into  important  annual  events  and  are,  of  course,  strictly  retail 
affairs.  They  can  best  be  conducted  by  the  commercial  organization  and 
should  not  be  allowed  to  get  into  the  control  of  newspapers  or  private  par- 
ties. All  the  general  arrangements  such  as  the  joint  publicity,  decorating  of 
the  retail  district,  fixing  of  the  dates,  securing  of  band  music,  etc.,  should  be 
made  by  the  retail  bureau  of  the  commercial  association. 

(5)  Dishonest  advertising  injures  the  entire  community.  It  destroys 
confidence  and  drives  trade  away  from  the  city.  The  honest  retailer  suffers 
with  the  dishonest  one,  and  so  long  as  the  latter  remains  in  business  the 
honest  retailer  is  at  a  disadvantage  and  handicapped  in  the  proper  conduct 
of  his  business.  The  commercial  organization  should  stand  behind  the  honest 
merchant  and  uphold  him  at  every  turn  of  the  road.  This  shouM  be  done 
even  if  the  association  loses  the  membership  and  support  of  the  merchants 
who  employ  dishonest  advertising  and  selling  methods.  Proper  city,  state 
and  even  federal  legislation  should  be  enactetl  into  law  seeking  the  elimina- 
tion from  the  retail  field  all  dishonest  merchants,  and  the  commercial  organi- 
zation should  make  it  one  of  the  activities  of  its  retail  division  to  not  on'y 
secure  but  have  such  laws  rigidly  enforced. 

(6)  The  commercial  organizations  should  see  to  it  that  proper  state 
laws  and  city  ordinances  are  passed  seeking  to  safeguard  the  retailer  against 
the  itinerant  merchant,  peddlers  and  trani-ient  trader;  also  legislation  con- 
trolling auction,  bankrupt,  creditors,  railroad  wreck  and  other  kinds  of  sales. 


116  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

In  doing  this  the  organization  is  protecting  the  consumer  against  fraud  just 
as  much  as  it  is  protecting  the  legitimate  mercliant  against  unlawful  competi- 
tion. After  these  laws  are  passed  the  enforcement  of  them  should  be  part  of 
the  service  rendered  the  retailer  bj'  the  commercial  organization. 

(7)  Special  trade  days  such  as  "dollar  days"  and  "suburban  days" 
should  be  events  promoted  and  controlled  entirely  by  the  commercial  or- 
ganization for  the  benefit  of  the  retailers.  If  railroad  fares  are  to  be  re- 
funded, special  trains  operated,  or  general  advertising  of  the  event  cohduct- 
ed,  it  should  all  be  done  by  the  organization.  These  events  are  more  suc- 
cessful and  mcire  permanent  when  fostered  by  the  commercial  organization 
than  by  the  newspapers  or  other  outside  interests. 

(8)  In  the  smaller  communities  the  commercial  organization  should 
decide  what  days  are  holidays  on  which  the  stores  will  be  closed  all  day 
and  the  ones  on  which  but  a  half-holiday  will  be  observed.  The  organization 
should  also  determine  what  evenings  the  stores  should  l>e  oi>en.  Then  the 
matter  of  Saturday  closing  hours  has  been  handled  by  the  commercial  or- 
ganizations in  the  larger  cities.  It  is  frequently  necessary  for  the  retailers^ 
to  work  in  harmony  with  the  manufacturers  so  the  stores  will  be  open  on 
the  evening  of  pay-day.  This  is  a  situation  frequently  developing  in  the 
smaller  cities  and  should  be  worked  out  by  the  commercial  organization. 

(9)  A  careful  study  or  survey  should  be  made  by  the  commercial  or- 
ganization of  the  delivery  systems  used  by  the  retailers  with  a  view  of  de- 
termining the  cost  and  whether  or  not  a  cooperative  system  would  be  an 
economy  and  at  the  same  time  maintain  adequate  delivery  service.  In  one 
small  city  Feventy-two  independent  delivery  rigs  were  displaced  by  twelve 
cooperative  rigs  with  an  additinn  of  four  on  Saturdays.  In  all  probability 
approximately  the  same  reduction  in  the  number  of  rigs  and  the  same  cur- 
tailment of  expense  could  be  effected  in  almost  every  city. 

(10)  In  several  of  the  larger  cities  the  returned  goods  evil  was  well 
under  control  months,  and  even  years,  ago.  This  matter  has  now  been 
brought  forcibly  to  the  consideration  of  all  commercial ,  organizations  by 
the  Board  of  Economy  of  the  Council  of  National  Defense.  This  condition 
and  many  others  brought  about  by  the  war  will  have  to  be  considered  by 
commercial  organizations  in  the  interest  of  their  retail  memlK?rs.  It  is  an 
ill  wind  that  blows  nobody  good  and  there  will  be  manj^  profitable  lessons 
we  can  learn  from  the  present  conditions  thrust  upon  us  on  account  of  the 
war,  and  that  city  which  gives  the  most  careful  consideration  to  these  prob- 
lems is  the  one  that  will  reap  the  greatest  benefit,  and  the  live  commercial 
organization  will  handle  all-  these  problems  as  they  develop  and  do  so  in 
the  interest  of  the  retail  merchant  and  the  trade  he  serves. 

(11)  The  study  of  retail  salesmanship  is  rapidly  developing  as  an 
activity  in  which  retail  merchants  are  taking  a  greater  interest.  It  is  almost 
impossible  for  the  retailer  to  employ  trained  help  unless  he  secures  it  from 
his  competitor  or  fellow  merchants.  C-ommercial  organizations  should  assist 
the  retailers  in  correcting  this  situation  and  they  can  do  so  by  bringing  to 
their  cities  sales  experts  to  address  both  retailer  and  employee.  The  con- 
ducting of  classes  in  salesmanship  in  the  night  schools,  business  colleges  and 
Y,  M.  C.  A.,  courses  should  be  encouraged.  It  is  also  conceded  that  proper 
retail  salesmanship  will  greatly  reduce  the  volume  of  returned  merchandise 
and  indirectly  assist  in  solving  that  particular  evil. 

(12)  Several  organizations  report  that  they  are  now  assisting  their 
members   in  preventing  shop-lifting  and   the  passing   of  fraudulent  checks. 


ORGANIZATION  SEliVICE  FOR  RETAILERS.  117 

Information  is  circulated  quickly  from  one  store  to  another  warning:  against 
persons  of  a  certain  description.  This  information  is  also  >:ent  to  nearby 
towns  for  the  purpose  of  protecting  the  merchants  of  those  communities. 
Systems  have  also  been  adopted  whereby  information  about  clerks  is  circu- 
lated among  the  members  of  the  retail  divisions  of  some  of  our  larger  or- 
ganization?. This  information  is  for  the  purpose  of  preventing  inefficient, 
drinking  and  dishonest  clerks  from  getting  another  position.  Clerks  who 
quit  without  giving  sufficient  advance  notice  are  also  included  in  the  list. 
It  would  be  practically  impossible  to  furnish  such  service  exceiit  through  the 
commercial  association. 

(13)  The  retailers  in  many  cities  have  acquired  the  habit  of  giving 
si)ecial  discounts  to  certain  people  i=^uch  as  ministers,  teachers,  actors,  clerks 
from  other  stores,  employees  of  city  institutions,  etc.  Now  many  of  these 
merchants  would  like  to  get  out  from  under  this  habit.  The  matter  can 
best  be  handled  and  the  problem  solved  by  an  agreement  among  the  retail 
members  of  the  commercial  organization.  Again  we  discover  a  desired  result 
almost  unobtainable  without  the  assistance  of  a  commercial  organization. 

(14)  The  practice  of  granting  a  discount  of  ten  per  cent  to  dressmakers 
is  one  that  has  been  very  largely  indulged  in  by  the  dry  goods  and  depart- 
ment stores  of  many  of  our  larger  cities.  That  this  practice  was  being  great- 
ly abused  is  revealed  by  the  fact  that  when  one  commercial  organization 
l>rought  about  the  ruling  that  only  those  dressmakers  employing  two  or  more 
helpers  were  entitled  to  the  discount  the  number  enjoying  this  privilege 
dropped  from  two  thousand  to  150.  This  is  strictly  a  service  to  be  ren- 
dered by  commercial  organizations  for  the  retail  members. 

(15)  While  the  improvement  of  the  highways,  or  in  other  words,  "good 
roads,"  is  seldom  looked  upon  as  an  activity  in  which  the  retailers  should 
be  especially  interested,  nevertheless  it  is  that  division  of  your  membership 
that  reaps  the  greatest  reward  through  the  construction  of  better  roads. 
Many  retailers  have  confessed  that  good  roads  have  not  onlj'  helped  to 
increase  their  business  but  have  made  it  easier  for  them  to  combat  mail 
order  competition.  With  the  general  use  of  automobiles  on  the  part  of  the 
farmers  it  is  now  more  essential  than  ever  before  that  all  roads  leading 
into  your  city  be  improved  and  properly  maintained  and  the  retailers  are 
the  ones  who  should  interest  themselves  in  this  movement.  Signboarding 
and  the  proper  posting  of  the  roads  are  also  important. 

(16)  Many  of  our  cities  have  boulevard  lighting  systems  in  the  retail 
districts  and  invariably  this  improvement  was  secured  by  the  retail  divi- 
sion of  the  commercial  organization.  The  proper  lighting  of  the  retail 
district  is  very  important  and  certainly  should  be  looked  after  by  the  re- 
tailers themselves  working  through  their  organization.  Other  problems  of  a 
municipal  nature  frequently  interest  the  retailers,  some  of  these  being  the 
proper  routing  of  street  cars;  the  size  and  position  of  outside  display  cases 
and  advertising  signs;  proper  schedules  on  suburban  trains;  the  cleaning  of 
sidewalks  in  the  downtown  district,  etc. 

(17)  Trading  stamps  are  now  looked  upon  as  an  uneconomical  factor 
in  merchandising  and  their  extermination  should  be  sought.  This  is,  of 
course,  a  matter  of  legislation  and  a  difficult  one  at  that,  but  the  time  ha^ 
arrived  when  all  unnecessary  factors  entering  into  the  sale  of  merchandise 
should  be  eliminated.  These  would  include  the  giving  of  trading  stamps, 
voting  contests^,  the  giving  of  premiums  and  the  extension  of  credit  on  too 
liberal  a  basis.     The  desired  results  can  be  obtained  only  through   the  co- 


118  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

operation  of  the  retailers  and  this  cooperation  would  be  impossible  without 
a  commercial  organization  or  the  forming  of  a  new  organization  which 
amounts  to  the  same  thing. 

There  is  unquestionably  more  lost  motion,  less  efficiency 
and  more  waste  in  retailing,  as  it  is  conducted  by  a  vast  major- 
ity of  the  retail  merchants  of  this  age,  than  in  any  other  phase 
of  business.  Delivery  systems  overlap,  are  cumbersome  and 
too  expensive;  credit  is  frequently  granted  in  a  very  unsatis- 
factory and  unscientific  manner ;  salespeople  are  poorly  trained 
and  unqualified;  advertising  is  misleading  and  frequently  dis- 
honest ;  competition  being  keen,  trade  evils  and  abuses  are  prac- 
ticed on  a  large  scale  and,  all  in  all,  retail  merchandising  is 
on  an  absolute  unsatisfactory  basis.  Manufacturers  maintain 
retail  service  bureaus  and  wholesalers  conduct  merchants  con- 
gresses with  the  sole  purpose  of  elevating  retail  merchandising 
methods.  Picture  if  you  can  a  group  of  retailers  getting  to- 
gether and  conducting  a  meeting  for  the  purpose  of  elevating 
wholesale  merchandising  methods.  The  truth  is  that  the  manu- 
facturers, wholesalers  and  others  are  trying  to  solve  the  retail- 
er's problems  for  him,  they  are  thinking  for  him.  Under  these 
conditions  the  deduction  is  apparent  that  not  only  must  the  re- 
tailer be  exceedingly  active  in  the  commercial  organization  but 
tlie  commercial  organization  must  be  exceedingly  active  for  the 
retailer  even  if  it  has  to  be  done  through  a  manufacturers', 
bankers'  or  jobbers'  committee. 


CHAPTER  VII. 
A  Plan  for  a  Temporary  Exhibition 

By  JOHN  M.  GUILD 

When  a  secretary  is  moved  to  initiate  a  home  products 
exposition  or  his  organization  undertakes  one,  what  should  be 
the  first  step,  and  what  should  be  the  entire  program?  It  is 
the  pui-pose  of  this  paper  to  provide  specifications. 

There  are  two  kinds  of  home  products  expositions — the 
temporary  and  the  permanent.  This  paper  deals  only  with  the 
temporary.  It  has  no  bearing  whatever  on  the  permanent  dis- 
play s  of  home  products  that  many  cities  have,  especially  in  the 
south  and  on  the  Pacific  Coast.  There  are  two  kinds  of  tem- 
porary expositions — the  kind  gotten  up  for  entertainment  and 
possibly  for  profit,  and  the  kind  gotten  up  for  trade  promotion 
and  for  education.  The  first  invariably  attracts  great  throngs 
that  carry  away  not  much  more  than  the  pleasant  taste  of  a 
good  time,  Avhereas,  the  other,  properly  planned  and  managed, 
becomes  as  it  should  be  a  valuable,  long  remembered  and  im- 
portant event  in  local  history. 

Why  should  time  and  eftort  be  invested  in  a  hastily  gotten 
up  glittery  thing,  when  careful  preparation  will  bring  forth  an 
exposition  that  will  be  not  only  creditable  to  the  organization 
back  of  it,  but  will  promote  greater  recognition  of  the  organi- 
zation's leadership,  greater  confidence  in  it,  greater  knowledge 
of  home  products,  more  business  and,  therefore,  better  times? 
But  there  are  two  classes  of  people,  those  that  want  to  be  en- 
tertained and  those  that  seek  knowledge.  Both  must  be  inter- 
ested. All  are  purchasers  or  consumers,  and  greater  home 
patronage  is  one  of  the  cardinals  of  such  an  exposition.  There- 
fore, in  planning  an  exposition,  the  necessity  for  striking  a 
medium  between  the  two  extremes  is  important. 

The  main  essentials  are  three.. ^  There  must  first  be  a  good 
reason  for  having  an  exposition.  This  involves  not  only  the 
object  sought  to  be  attained,  but  the  timeliness.  Whether  or 
not  manufacturers  can  afford  to  put  on  the  right  kind  of  exhi- 

119 


120  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

bition  must  be  taken  into  consideration.  The  second  is  a  good 
show.  It  must  be  that  in  these  days  of  twentieth  century  per- 
fection. The  third  is  a  good  attendance.  With  a  good  purpose, 
a  good  show  and  a  good  attendance  an  exposition  successful  in 
every  way  is  assured. 

So  much  for  general  principles.  Now  for  details  and  a  plan 
of  campaign  which,  for  purposes  of  simplicity,  have  been  classi- 
fied into  five  main  headings:  Purpose,  organization,  prepara- 
tion, operation,  results. 

Under  purpose  are  l^ye  sub-divisions  that  cover  the  prin- 
cipal reasons  for  an  exposition.  These  are  promotion  of  trade, 
education,  cooperation,  advertising,  profit. 

As  a  general  proposition,  the  first  purpose  is  the  promo- 
tion of  trade,  unless  the  exposition  is  being  promoted  by  travel- 
ing professionals.  The  exposition  is,  therefore,  intended  to 
show  the  home  people  first  everything  made  in  their  town.  The 
average  citizen,  yes,  and  the  average  business  man,  keen  though 
he  may  be,  has  little  conception  of  what  is  made  behind  his 
neighbor's  factory  walls.  He  is  so  engrossed  with  his  own  af- 
fairs that  he  couldn't,  to  save  his  soul,  tell  whether  or  not  some 
common  article  of  use,  that  he  himself  doesn't  handle,  is  made 
there.  If  that  is  true  of  home  people,  it  is  more  so  of  strangers 
and  an  exposition  should  aim  to  also  reach  the  outside  trade. 

To  promote  trade,  the  displays  are  supplemented  when- 
ever possible  by  the  distribution  of  descriptive  matter  and  fre- 
quently samples.  The  latter  is  more  common  in  the  case  of 
foodstuffs,  but  in  paper,  metal  and  wood  working  lines,  attrac- 
tive little  souvenirs,  often  the  articles  in  miniature,  are  given 
out.  The  value  of  these  depends  on  the  articles  advertised,  its 
merit,  class  of  people  reached,  etc.  The  practice  of  giving  out 
something  is  recommended,  especially  for  its  power  in  drawing 
a  certain  class  to  the  exposition.  Although  drawn  there  largely 
by  the  attraction  of  something  for  nothing,  they  cannot  attend 
without  some  good  resulting. 

A  survey  of  expositions  held  shows  but  few  cases  where  the 
articles  on  exhibition  are  confined  strictly  to  home  products. 
The  first  step  away  from  that  rigid  classification  is  to  permit 
the  exhibition  of  articles  of  outside  manufacture  that  do  not 
compete  Avith  a  home  production.  The  next  and  commonest 
procedure  is  to  allow  any  bona  fide  manufacturer,  jobber  or 
merchant  to  show  anything  made  or  sold  there,  in  the  regular 


A  PLAN  FOR  TEMPORARY  EXHIBITION.  121 

course  of  business.  This  of  course  lets  in  the  retailer,  the  auto- 
mobile dealer  and  other  classes,  not  only  desirable  but  frequent- 
ly indispensable  if  the  exposition  is  of  any  great  magnitude. 

One  thing  invariably  prohibited  is  the  selling  of  anything 
from  the  exhibits,  and  it  should  be.  An  exposition  is  meant  to 
be  promotional  of  interest  in  the  goods  shown,  and  if  exhibitor's 
want  visitors  to  try  their  wares  they  should  furnish  free 
samples.  Booths  are  not  intended  to  be  selling  places,  and  it 
is  somewhat  to  the  discredit  of  the  exposition  management  that 
permits  such  sales.  The  average  exhibitor  will  be  satisfied  to 
shov\'  his  goods  and  take  orders.  This,  of  course,  is  independent 
of  concessions. 

Educational 

If  the  pui'pose  of  an  exposition  is  along  the  lines  so  far 
indicated,  the  educational  value  to  the  community  will  be  very 
great.  To  impress  home  people  with  what  is  made  in  their 
town,  get  them  to  try  the  home-made  article,  whether  cornmeal 
or  a  washing  machine,  impressing  them  with  the  quality  or 
superiority  to  the  imported  article  and  thereby  get  them  to 
talk  it  among  themselves  and  to  outsiders,  means  an  invaluable 
ally  to  the  other  recognized  advertising  methods.  All  of  this 
means  a  greater  home  consumption,  and  there  is  no  better  ad- 
vertisement than  the  general  use  of  a  home  product.  This  use 
unconsciously  develops  a  home  pride  and  creates  a  natural  con- 
fidence in  everything  else  made  there.  It  makes  a  citizen  more 
readily  responsive  to  other  calls  for  civic  patriotism.  It  knits 
the  community  more  closely  together  and  develops  a  better 
spirit  in  every  way,  one  that  may  be  capitalized  to  almost  any 
extent  by  the  local  commercial  body. 

• 
Cooperation  and  Advertising 

If  another  purpose  of  the  exposition  be  working  up  a  spirit 
of  cooperation,  this  is  a  splendid  medium.  In  the  average 
community  manufacturers  are  prone  to  work  along  independ- 
ently, bear  their  own  burdens,  fight  their  own  fights,  overlooking 
the  fact  that  this  is  the  day  of  cooperation.  An  exposition 
brings  the  different  exhibiting  interests  together,  and,  being 
for  a  common  puri)ose,  creates  a  cjoser  fraternal  and  commer- 
cial spirit,  even  among  trades  widely  different. 

If  the  purpose  of  the  exposition  is  community  advertising, 
no  city  or  town  can  have  a  better  medium.    As  the  big  national 


122  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

and  international  expositions,  held  years  apart  and  in  different 
parts  of  the  country,  are  milestones  of  progress  in  manufacture, 
science  and  art,  so  is  the  local  exposition  a  positive  evidence  of 
the  progress  in  that  community.  The  effectiveness  of  it  as  an 
advertisement  depends  on  how  widely  it  is  advertised,  whether 
only  locall}^,  in  very  nearby  towns,  in  all  trade  territory  or 
beyond. 

Profit  or  Deficit 

If  the  purpose  of  the  exposition  is  financial  profit,  that 
will,  to  some  extent,  detract  from  the  reputation  and  dignity  of 
the  proposition.  Fortunately,  profit  is  generally  of  secondary 
consideration  and  means  to  guard  against  a  deficit  rather  than 
gain  a  profit.  But  in  estimating  the  probable  expenses  and 
income,  it  is  well  to  figure  on  a  safe  margin  so  that  contingen- 
cies will  be  provided  for.  No  profit  should  be  made  from  the 
exhibitor  in  any  way.  He  is  a  partner  in  the  enterprise.  With- 
out him  there  can  be  no  exposition.  He  must  be  treated  right 
and  given  everything  possible  for  his  entry  fee.  Many  exposi- 
tions plan  to  open  their  doors  with  all  expenses  up  to  that  time 
met,  so  that  if  bad  weather  should  ensue,  the  management  will 
be  mighty  glad  they  did  not  figure  on  admissions  to  meet  the 
overhead  expense.  It  is  noticeable  that  where  there  has  been  a 
profit  as  the  result  of  playing  safe,  it  generally  goes  to  the  local 
organization  to  be  reinvested  for  the  benefit  of  the  community. 
It  is  well  to  announce  in  advance,  where  there  is  likelihood  of 
the  question  being  raised,  that  this  is  what  will  be  done.  It 
can  be  shown  that,  what<?ver  the  admission  charge  is,  it  will  be 
but  a  very  nominal  tax  on  the  tens  or  hundreds  of  thousands 
of  people  who  attend.  The  success  of  the  exposition  depends 
very  much  on  its  purpoj^e. 

Organization  and  Plan 

Under  organization  are  the  sub-divisions,  preparedness, 
plan,  officers,  committees,  rules  and  regulations,  and  building. 

Organization  means  preparedness.  If  the  exposition  is  to 
represent  more  than  just  the  circumscribed  ideas  of  a  commu- 
nity, without  the  benefit  of  a  wider  horizon,  there  should  be 
gathered  from  every  other  exposition  recently  held,  the  best 
ideas  that  have  been  developed  in  each.  If  possible,  some  expo- 
sitions should  be  visited.  In  any  event  there  should  be  ascer- 
tained and  classified  such  information  as  where  and  when  held. 


A  PLAN  FOR  TEMPORARY  EXHIBITION.  12:3 

time  of  year,  number  of  days,  detail  on  nature  of  building,  area, 
how  exhibit  space  laid  out,  charge  for  it,  kind  of  organization, 
details  of  admission  and  attendance,  main  items  of  expense  and 
all  other  data  procurable.  In  this  paper  these  are  treated  to 
the  limit  of  space  and  of  time. 

In  planning  an  exposition  the  probable  demand  for  it 
should  be  well  considered.  This  means  whether  or  not  the 
local  manufacturers  and  merchants  may  reasonably  be  expect- 
ed to  support  it.  Call  together  those  for  it  and  those  luke- 
warm or  cold  and  ^^selT'  it  to  them  as  a  good  salesman  would 
any  other  intangible  thing,  but  see  that  it  is  presented  to  them 
in  a  deiinite  form.  They  should,  if  possible,  be  convinced  at  the 
outset,  no  matter  if  this  seems  to  delay  the  project.  But  the 
few  who  still  hold  out  are  likely  to  be  won  over,  as  the  plans, 
if  they  are  what  they  should  be,  are  developed  and  worked  out. 

A  canvass  shows  that  the  local  commercial  organization  is 
the  general  and  natural  instigator  of  such  an  exposition.  That 
*  fortunately  insures  in  the  nature  of  things  a  good  organiza- 
tion. A  little  working  body  of  about  eleven  men,  w^ho  become 
the  governing  board  and  mainspring  of  the  movement,  has  been 
found  good.  These  eleven  should  be  workers.  No  room  there 
for  any  other  variety,  not  even  the  prominent  citizen  whose 
name  would  look  good  at  the  head  of  it.  The  head  must  be  a 
live  wire  and  a  leader.  It  is  desirable  to  have  a  larger  body 
interested  in  the  project,  to  back  it  in  a  moral  sort  of  way  by 
the  use  of  their  names,  and  interest  them  more  readily  as  pros- 
pective exhibitors,  so  an  advisory  committee  of  fifty  or  one 
hundred  is  effective.  Of  course  the  responsibility  is  with  the 
smaller  body  and,  while  the  larger  may  be  called  "advisory,'^  it 
should  be  in  reality  a  body  to  report  to  and  consult  with. 

Officers  and  Committees 

If,  for  the  protection  of  the  few  who  have  to  father  such  a 
job,  it  is  deemed  wise  to  incorporate  an  industrial  exposition 
company,  and  this  is  recommended,  it  calls  for  the  usual  offi- 
cers, instead  of  chairman,  etc.,  and  instead  of  an  executive  com- 
mittee, a  board  of  directors.  In  choosing  officers,  choose  them 
for  their  fitness,  each  to  assume  the  chairmanship  of  a  commit- 
tee and  to  carry  the  responsibility  of  a  fixed  piece  of  work. 

As  in  a  commercial  organization,  so  in  an  exposition  or- 
ganization,  a  number  of  committees  is  necessary  but  these 


124  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

should,  however,  be  kept  down  to  a  minimum.  Not  more  than 
ten  are  recommended.  It  is  suggested  that  there  be,  in  addi- 
tion to  the  executive  committee  or  board  of  directors,  a  finance 
committee,  of  which  the  treasurer  should  be  the  chairman.  To 
one  member  of  the  governing  body  should  be  assigned  responsi- 
bility for  exhibits.  This  means  selling  space  and  securing  ex- 
hibits. Of  this  there  should  be  a  sub-committee  to  look  after 
installation  of  exhibits  which  later  is  a  job  in  itself,  especially 
to  induce  exhibitors  to  get  their  stuff  to  the  building  and  into, 
place.  The  booths  committee  is  an  equally  important  one.  To 
it  should  be  delegated  responsibility  for  all  general  construc- 
tion work  inside  the  building.  The  publicity  committee  is  a 
veritable  keystone  of  the  Avhole  thing,  because,  without  ample 
publicity,  the  best  laid  and  executed  plans  would  be  like  the 
light  under  a  bushel.  Admissions  and  check-room  should  be 
one  committee's  task,  concessions  another's,  entertainment  that 
of  another,  and  there  should  be  one  committee  exclusively  for 
safety  and  comfort.  That  makes  ten,  including  the  governing 
body. 

Under  organization  comes  preparation  of  rules  and  regula- 
tions. These  should  be  specific.  In  addition  to  covering  other 
details,  they  should  at  the  outset,  declare  who  are  eligible  to 
exhibit,  whether  just  the  local  manufacturers  or  also  those 
who  sell  outside  made  goods.  The  charge  for  space  should  be 
announced  and  what  such  charge  shall  cover  in  the  way  of 
decoration,  light,  power,  Avater,  etc.,  all  of  which  should  be 
included  in  the  charge  for  space.  The  rules  should  also  de- 
termine the  status  of  concessions,  lotteries,  smoking,  etc. 

Building 

One  of  the  first  steps  is  to  determine  where  the  exposition 
shall  be  held,  Avhether  or  not  there  is  a  suitable  building  avail- 
able, and  if  not,  what  must  be  done  to  meet  that  need.  One  of 
the  essentials  to  success,  especially  in  larger  cities,  is  a  central 
location.  In  smaller  places  it  seems  to  make  little  difference 
where  an  exposition  is  held  but  a  central  and  easily  reached 
location  is  an  important  factor  in  large  cities,  involving  as  it 
does,  accessibility  from  the  business  district,  on  foot  and  by 
transportation  lines. 

It  has  been  found  that  where  a  big  enough  and  well  located 
building  does  not  exist,  a  new  factory  building  answers  the 


A  1»LAX  FOR  TEMPORARY  EXHIBITION.  125 

purpose  .splendidly.  In  fact,  there  is  a  marked  relation  be- 
tween a  fine  new  factory  and  an  exposition  project.  A  new^ 
factory  building,  of  proportion  sufficient  for  an  exposition,  is 
indisputable  evidence  of  business  prosperity  and  expansion. 
It,  therefore,  proves  the  timeliness  for  putting  on  an  exposi- 
tion. If  the  use  of  such  a  building  is  contemplated  the  sugges- 
tion is  made  to  get  in  touch  with  its  owners  about  the  time 
the  first  brick  is  laid.  By  thus  taking  time  by  the  forelock  and 
working  up  the  exposition  while  the  building  is  going  up,  an 
exposition  much  better  than  if  hastily  planned  is  assured. 

Preparation 

Under  preparation  must  be  treated  exhibits,  booths, 
finance,  publicity,  service. 

In  order  to  make  the  exposition  comprehensive,  represen- 
tative and  still  poi)ular,  some  preliminaries  must  be  noted. 
One  of  the  first  steps  in  preparation  is  for  the  governing  body, 
working  with  the  finance  committee,  to  prepare  a  comprehensive 
budget.  This  is  based  on  the  estimates  of  the  chairmen  of  com- 
mittees, to  show  what  amount  of  money  is  likely  to  be  needed 
by  each  committee.  This  determines  what  will  have  to  be 
charged  for  space.  At  the  same  time  should  be  determined  the 
charge  for  admission.  This  ranges  generally  from  ten  to 
twenty-five  cents,  with  the  smaller  charge  in  greater  favor. 
Dates  for  the  exposition  should  be  decided  upon  as  well  as 
what  day  of  the  week  it  shall  open,  whether  in  the  day  time 
or  evening,  and  the  hours  that  the  exposition  will  be  open  each 
day.  It  is  recommended  that  the  exposition  be  opened  on  an 
evening  toward  the  latter  part  of  the  week.  This  will  force 
completion  of  all  work,  and  the  end  of  the  week  will  see  in- 
stallation fully  made.  In  conducting  an  exposition  Sunday  is 
invariably  respected. 

Under  no  circumstances  should  the  installation  or  the 
changing  of  exhibits  be  permitted  during  open  hours.  The 
rule  should  be  rigid,  and  if  the  exposition  is  not  opened  until 
ten  o'clock  of  each  day,  and  this  hour  is  recommended,  with  the 
closing  hour  of  eleven  P.  M.,  this  affords  sufficient  time  for 
rearrangement  of  exhibits  and  all  changes. 

Exhibits* 
Exhibits  should  be  classified  into  different  floors  or  sec- 
tions.    There  should  be  well  defined  classifications,  such  as 


126  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

machinery  hall,  automobile  shoAV,  electrical  exhibit,  floral  hall 
and  others. 

Experience  shows  the  most  successful  expositions  to  have 
furnished  free  power,  as  an  incentive  to  use  it  in  putting  on 
"live''  exhibits.  The  same  should  be  done  with  gas  and  water. 
Instead  of  i)enalizing  those  who  use  these  it  should  be  the  other 
way,  as  an  inducement  to  make  the  exposition  fairly  hum  with 
life.  This  is  one  of  the  difficulties  of  all  expositions  however, 
and  a  canvas  shows  more  or  less  disappointment  with  the  num- 
ber that  do  take  advantage  of  free  power,  gas  and  water.  In 
many  instances  where  a  "live"  exhibit  is  not  possible,  inter- 
esting exhibits  are  made  by  showing  goods  from  the  raw  ma- 
terial to  the  finished  article  or  processes  of  years  ago  compared 
with  processes  of  today. 

As  a  help  in  working  up  attractive  exhibits,  the  employ- 
ment of  an  expert,  possibly  some  ex-window  dresser,  as  a  super- 
intendent of  exhibits,  is  recommended.  This  for  the  reason 
that  many  imagine  that  they  have  little  to  exhibit,  and  that 
more  or  less  unattractive.  This  man  will  work  out  with  them 
something  satisfactory  and  will  prove  a  good  investment  in 
helping  to  sell  space. 

Regulation  of  the  height  of  exhibits  is  an  important  thing. 
That  depends  on  the  height  of  ceilings,  of  partitions,  and  other 
physical  conditions.  Plarmony  with  adjoining  exhibits  should 
be  compulsory  so  that  the  general  plan  and  decorative  scheme 
will  be  preserved. 

Booths 

In  determining  floor  plans,  the  size  and  shape  of  booths, 
width  of  aisles,  etc.,  an  architect  is  recommended,  if  his  services 
can  be  secured  as  a  member  of  the  booths  committee.  Great 
care  should  be  exercised  in  laying  out  the  space  so  that, a  maxi- 
mum will  be  available  to  sell,  but  that  spaces  may  be  so  shaped 
that  they  will  be  most  acceptable  to  exhibitors.  It  has  been 
found  that  a  greater  frontage  than  depth  is  desirable,  in  the 
ratio  of  about  four  to  three.  Exhibitors  w^ant  all  the  frontage 
on  the  aisles  they  can  get. 

A  rigid  plan  for  booths  for  the  entire  exposition  is  unwise. 
The  dispenser  of  food  products  wants  a  very  shallow  booth,  a 
wide  front  with  a  counter,  whereas  the  automobile  man  wants 
half  an  acre  if  he  can  have  it,  and  will  take  it  in  almost  any 
shape.     In  this  connection,  w^hile  a  fixed  rate  per  square  foot 


A  PLAN  FOR  TEMPORARY  EXHIBITION.  127 

should  be  used  for  the  whole  layout,  it  should  be  used  only  as 
a  basis.  A  booth  rate  should  be  established.  This  means  snow- 
ing on  the  floor  plans,  the  layout  and  exact  dimensions  of  every 
space,  with  the  price  for  eacn  booth.  It  means  also  charging  a 
premium  for  the  more  desirable  spaces  and  selling  the  less 
desirable  at  something  below  the  standard  price.  Spaces  should 
be  reserved,  as  may  be  necessary,  for  exhibits  of  charitable  or- 
ganizations, schools,  art  collections,  etc.,  and  for  these  no 
charge  is  made. 

Wide  aisles,  much  wider  than  seem  necessary,  should  be 
provided.  Provision  should  be  made  for  maximum  crowds. 
Aisle  widths  depend  on  the  shape  and  area  of  the  building. 
Where  the  building  is  long  and  comparatively  narrow,  the  most 
practical  for  the  handling  of  crowds,  a  double  row  of  booths 
down  the  middle,  back  to  back,  is  a  splendid  arrangement,  with 
the  aisles  around  the  walls.  But,  if  the  building  is  too  wide  to 
be  used  in  that  way  an  additional  row  of  booths  around  the 
walls  is  the  next  suggestion. 

It  is  recommended  that  a  good  contractor  be  employed  to 
build  all  booths,  furnish  all  material  and  labor,  and  later  re- 
move booths.  To  insure  the  work  going  along  on  schedule  time 
the  employment  of  a  superintendent  of  construction  to  keep  in 
touch  with  the  different  committees,  the  architect  and  the  con- 
tractor, is  a  good  investment. 

Booths  should  be  built  on  a  uniform  plan  for  each  section 
or  floor.  Where  there  are  a  number  of  floors  or  sections,  the 
same  general  scheme  may  be  followed  but  with  variations  in 
partition  details  and  color  scheme.  The  booths  committee 
should  be  the  authority  on  all  decorations.  It  should  establish 
a  harmonious  color  scheme  and  furnish  all  booths  ready  for 
occupancy.  Uniform  signs  should  be  provided  free  by  the  man- 
agement. Signs  in  the  aisles,  or  elsewhere  than  within  the  ex- 
hibition space,  should  be  prohibited. 

Provision  should  be  made  for  the  installation  of  electrical 
power,  natural  or  artificial  gas  and  vents  for  same,  water  and 
provision  for  wastage  wherever  needed,  preferably  giving  all 
of  this  service  gratis  and  charging  on\j  for  any  unusually  ex- 
pensive installation.  Wall  space  c^n  readily  be  made  useful 
for  flat  exhibits.  These  may  be  fastened  on  artistic  panels  with 
good  effect  instead  of  on  the  walls. 


128  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Finance  and  Publicity 

The  finance  committee  should  be  responsible  for  insuring 
the  exposition  coming  out  clear,  without  a  deficit.  It  should 
have  charge  of  all  bookkeeping,  and  the  responsibility  for  insur- 
ance of  all  kinds,  liability,  elevator,  fire,  etc.  Fire  insurance 
is  considered  unnecessary  in  a  fireproof  building,  provided 
proper  precautions  are  taken,  and  for  this  reason  few  exposi- 
tions assume  fire  risk  on  exhibits. 

Publicity  should  be  comprehensive.  It  should  start  from 
the  time  the  first  announcement  is  made.  That  announcement 
should  be  attractively  gotten  up  and  be  a  prospectus  that  will 
tell  the  purpose,  plan  and  general  details  of  the  undertaking. 
Newspapers  at  home  and  in  nearby  trade  territory  should  be 
used  and  plenty  of  paid  space  taken.  This  is  considered  the 
best  medium  of  publicity,  but  it  should  be  supplemented  by  a 
judicious  use  of  billboards. 

Poster  stamps,  by  the  hundreds  of  thousands,  are  an  at- 
tractive advertisement  at  home  and  away  from  home.  Ex- 
hibitors and  citizens  generally  are  ready  to  use  them  in  great 
quantities,  provided  they  are  furnished  without  cost.  Cards 
in  store  windows  and  surrounding  railroad  stations,  big  poster 
signs  in  local  depots,  hangers  in  street  cars,  cards  on  wagons 
and  arrow  signs  on  poles,  pointing  the  way  to  the  exposition 
building,  are  all  good. 

Advance  sales  of  tickets  in  stores  is  somewhat  helpful,  but 
the  issuance  by  exhibitors  of  complimentary  tickets  to  their 
customers,  mostly  out  of  town  people,  is  one  of  the  best  schemes 
devised.  This  is  done  through  an  attractive  ticket-invitation 
Avith  the  name  of  the  firm  on  it,  charging  just  what  they  cost. 
and  billing  back  against  the  firm  for  those  later  taken  up  at  the 
door.  Special  "days'*  for  surrounding  towTis  or  local  organiza- 
tions are  common.  A  new  feature  is  the  making  of  exposition 
Aveek  "guest  week"  and  interesting  the  whole  people  of  the  com- 
munity to  bring  visitors  and  friends  during  that  week. 

Decoration  of  the  outside  of  the  exposition  building,  with 
lights  and  flags,  with  search-lights  on  the  roof,  to  be  flashed 
during  the  evening  hours  of  the  exposition,  are  splendid  fea- 
tures and  help  intensify  local  interest.  The  provision  of  an 
official  photographer  and  the  regulation  or  issuance  of  pro- 
grams come  under  the  publicity  committee's  management,  as 
will  the  securing  and  publicity  of  reduced  rates  on  transporta- 
tion lines. 


A  PLAN  FOR  TEMPORARY  EXHIBITION.  129 

Service 

Plans  are  generally  made  for  furnishing,  without  extra 
charge,  reasonable  wiring  of  booths  and  exhibits  and  furnishing 
current  to  make  exhibits  well  illuminated  and  attractive,  charge 
for  this  being  also  included  in  the  charge  for  space.  The  build- 
ing must  also  be  wired  inside  and  outside  for  its  illumination. 
Under  preparation  must  come  wiring  of  the  booths  and  exhib- 
its, necessitating  space  in  the  contract  blank  for  exhibitors  to 
show  what  current  thev  are  likelv  to  need.  Another  thins:, 
occasionally  extra  street  lighting  is  needed  in  the  vicinity  of 
the  exposition  building.  This  makes  more  or  less  of  a  "white 
way-'  leading  to  the  exposition,  makes  it  safer  for  traffic,  and 
better  protection  to  automobiles  where  parking  space  might 
otherwise  be  poorly  lighted. 

Under  operation  are  reasons  for  seven  sub-heads :  Opening, 
director,  admission,  information,  selling,  entertainmexit,  safety 
and  comfort. 

The  opening  of  the  exposition  under  proper  auspices  and 
with  the  right  kind  of  enthusiasm,  necessitates  some  kind  of 
exercises.  These  may  be  elaborate  or  simple.  It  is  urged  that 
where  it  is  not  necessary  to  have  parades  for  advertising  pur- 
poses, that  they  be  very  brief  and  at  the  main  entrance  to  the 
exposition.  Whatever  they  are  they  serve  merely  as  a  publicity 
handle  or  as  a  sort  of  "kick-off"  for  the  exposition.  But  if  in 
larger  communities,  the  governor  of  the  state  or  some  person 
of  importance  may  be  secured,  that  adds  still  more  to  the  ad- 
vertising value. 

To  insure  the  best  management  during  the  actual  hours 
of  the  exposition,  one  man  should  be  made  director  and  be  put 
in  general  charge.  He  should  be  one  Avho  has  been  very  closely 
connected  with  all  of  the  details.  Through  him  all  plans  and 
policies  should  be  carried  out.  He  should  be  constantly  on  the 
job,  and  available  to  the  exhibitors,  with  headquarters  in  the 
exposition. 

Admission  and  Information 

Adequate  facilities  should  be  provided  foir  the  biijgest 
crowds  expected.  There  should  be  a  good  lobby  into  which  the 
people  may  pour,  no  matter  w^hat  kind  of  weather  on  the  out- 
side. A  corps  of  good  ticket  sellers,  with  fast  working  vending 
machines,  and  another  corps  of  ticket  takers,  are  necessary,  as 
well  as  men  near  the  entrance  to  direct  people  in  the  right 

5 


130  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

way.  Should  the  building  used  be  of  several  stories  and 
equipped  with  elevators,  it  is  recommended  that  visitors  be 
taken  directly  to  the  top  floor,  and  allowed  to  pass  down 
through  the  building  using  the  stairways  from  floor  to  floor. 
This  avoids  congestion  on  the  first  floor. 

The  admissions  committee  should  have  charge  of  the  check- 
room and  should  handle  it  itself,  to  insure  best  treatment  and 
greatest  protection,  and  also  benefit  by  whatever  profit  is  made. 

There  should  be  an  information  bureau  with  one  or  more 
in  constant  attendance,  equipped  with  full  information  re- 
garding the  exposition,  as  well  as  the  city  generally.  With  the 
information  bureau  should  be  a  telephone  exchange,  telegraph 
offices,  mail  facilities  for  handling  incoming  and  outgoing  mail, 
a  lost  and  found  bureau,  and,  if  possible,  a  joint  railroad  agency. 
If  headquarters,  office  of  the  director,  etc.,  are  in  close  proxim- 
ity to  the  information  booth,  so  much  the  better.  It  makes 
that  point  the  heart  of  the  whole  exposition,  to  which  and  from 
which  come  and  go  all  authority  and  information. 

Concessions 

It  is  recommended  that  concessions  be  few  and  that  the 
few  be  reliable.  In  order  to  fill  space  or  derive  a  revenue,  from 
outright  sale  of  space  or  on  a  commission  basis,  concessions  are 
sometimes  sold  to  professional  concessionaires  in  the  business 
to  make  the  biggest  profit.  When  these  are  permitted  to  do 
business,  it  is  at  the  expense  of  the  reputation  of  the  exposition. 
It  is,  therefore,  urged  that  concessions  be  let  only  to  local  well- 
known  or  reputable  outside  concerns.  Better  convert  space  re- 
served for  a  concession  into  a  smoking  room  or  a  rest  room 
than  to  fill  it  with  something  that  will  cheapen  the  exposition. 
A  good  restaurant  for  those  connected  with  the  exposition  and 
those  of  the  public  who  want  to  patronize  it  should  be  provided 
as  a  great  convenience. 

Safety  and  Comfort 

For  the  safety  and  comfort  of  everyone  connected  with  or 
attending  the  exposition,  ample  provision  should  be  made.  If 
elevators  are  used,  capable  men  should  be  in  charge  of  them 
and  there  should  be  a  director  at  each.  There  should  be  plenty 
of  signs  directing  the  movements  of  people.  Exits  should  be 
plainly  indicated.  Fire  stations  should  be  established  in  every 
section  with  a  fireman  and  apparatus  at  each.     There  should 


A  PLAN  FOR  TEMPORARY  EXHIBITION.  131 

be  police  at  the  entrance  and  exits.  There  should  be  plenty 
of  parking  space  provided  for  automobiles,  and  watchmen  to 
look  after  them.  There  should  also  be  watchmen  in  the  build- 
ing to  look  after  exhibits,  both  day  and  night,  although  in  the 
day  time  it  is  not  as  necessary,  if  the  rules  and  regulations  pro- 
vide, as  they  should,  for  someone  to  be  in  charge  during  ex- 
position hours.  Provision  for  drinking  water  should  be  made 
as  well  as  for  regulation  of  heating  and  ventilating,  especially 
in  the  winter  months. 

There  should  be  rest  room  and  toilet  facilities  on  every 
floor  or  section  and  these  should  all  have  attendants.  Benches 
for  those  who  tire  should  be  scattered  just  as  thickly  as  the 
public  space  will  permit. 

A  day  nursery  for  children,  with  attendants,  and  a  hospital 
with  doctors  and  nurses  ready  for  any  emergency,  are  found  in 
every  up-to-date  exposition. 

There  should  be  a  large  janitor  force  for  day  and  night 
service.  In  the  daytime  aisles  must  be  kept  cleaned  up.  In  this 
connection  the  exhibitor  s^hould  be  responsible  for  sweeping 
out  and  dusting  his  own  exhibit  space,  so  that  janitors  will 
not  have  to  go  inside  the  booths.  Janitor  equipment  must  not 
be  overlooked,  including  a  sweeping  compound  if  the  exposition 
is  held  in  a  new  building  with  cement  floor.  This  is  a  brief 
summary  of  Avhat  may  be  done  in  providing  for  the  visitors' 
comfort  and  convenience. 

Entertainment 

What  entertainment  is  necessary  is  a  question  for  local 
determination.  In  the  smaller  communities  it  is  found  that  a 
lot  of  entertainment  is  generally  provided,  everything  from 
vaudeville  performance  to  high  diving.  For  the  real  exposition 
it  is  recommended  that  lecture  halls  be  provided  wherever  pos- 
sible and  so  arranged  that  they  may  be  darkened  for  moving 
pictures.  Exhibitors  will  be  glad  to  furnish  their  own  reels 
and  lectures,  and  will  use  the  facilities  provided  to  an  astonish- 
ing degree.  The  exposition  management  can,  by  judicious 
choice  of  films,  give  very  interesting  and  educational  exhibi- 
tions. All  motion  pictures  should  be  without  charge.  Assur- 
ance should  be  secured  that  the  pictures  are  wholesome  and  that 
the  lecture  is  instructive. 

Music  is  an  essential,  plenty  of  it,  but  consideration  must 


132  '  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

be  given  the  exhibitor  who  tinds  it  difficult  to  impress  a  pros- 
pective customer  with  the  merits  of  his  wares,  with  the  ^'Hun- 
garian Rhapsody''  floating  around  him  or  *'Tipperary"  jarring 
his  nerves.  He  wants  the  band  or  orchestra  as  far  from  him  as 
possible.  Whatever  entertainment  is  furnished  should  be  in 
keeping  with  the  basic  plan  and  the  standard  of  the  whole  ex- 
position. 

Results 

These  specifications  are  a  summary  of  the  things  done  in 
connection  with  the  most  successful  expositions.  Results  will 
depend  on  how  well  they  are  carried  out.  Results  may  be  cred- 
ited to  four  different  parties,  the  public,  the  community,  the 
exhibitors,  the  promoters. 

By  attendance,  the  public  will  show  the  extent  of  their 
interest  and  approval.  Barring  unfavorable  weather  condi- 
tions the  attendance  is  cumulative.  It  increases  from  day  to 
day,  as  the  result  of  favorable  advertising  given  by  each  da^^'s 
attendance.  x\s  a  general  thing  the  attendance  from  out  of  the 
city  averages  around  ten  per  cent,  depending,  of  course,  on  the 
nature  of  the  exposition  and  the  amount  of  outside  advertising. 

Attendance  is  the  index  so  far  as  the  public  is  concerned, 
and  if  confidence  in  the  leadership  of  the  organization  that 
promoted  the  exposition  is  lacking,  it  is  due  to  a  disregard  of 
some  of  the  foregoing  suggestions.  The  exposition  should  close 
yvith  a  marked  advantage  to  the  organization  for  having  suc- 
cessfully put  on  and  conducted  an  exposition  that  pleased  the 
public.    This  can  be  done.    It  should  be  done. 

If  the  exposition  accomplishes  what  it  was  intended  to,  the 
community  spirit  wdll  be  strengthened  and  there  will  be  a  better 
pull-together  disposition  than  ever.  The  revelation  of  home 
products  will  be  a  great  education  to  every  citizen  and  particu- 
larly the  school  children.  These  will  learn  whether  their  city 
is  a  producer  of  implements,  cereals,  fine  machinery  or  varied 
articles.  They  will  see  in  such  a  display  a  magnificent  and  dig- 
nified testimonial  to  labor  and  the  work  of  man's  hands.  They 
will  also  see  the  results  of  twentieth  century  industrial  effi- 
ciency and  progress. 

The  exposition  will  promote  a  greater  patronage  of  home- 
made goods.  This  will  mean  more  business  for  everybody  and 
consequently  better  business  conditions.  The  community  will 
also  have  become  favorably  advertised  on  the  outside,  through 


A  PLAN  IX)R  TEMPORARY  EXHIBITION.  133 

the  best  publicity  medium  a  city  can  have.  The  value  of  such 
publicity  >\  ill  be  immediately  apparent,  and  will  also  be  perma- 
nent. 

Exhibitors 

The  exhibitors,  as  one  of  the  principals  in  the  project,  gen- 
erally report  fine  advertising  at  a  minimum  cost,  great  num- 
bers of  new  friends  made,  and  lots  of  orders  taken.  Exhibitors 
tell  of  introductions  to  prospective  customers  that  they  could 
not  possibly  have  reached  in  any  other  way.  They  report  success 
in  the  introduction  of  new  lines  by  getting  the  attention  of  the 
public  all  at  once,  and  they  are  generally  ready  for  another 
exposition. 

The  results  to  the  promoters  of  the  exposition  should  be 
something  of  a  total  of  the  benefits  to  the  people,  the  commu- 
nity and  the  exhibitors.  If  the  exposition  has  been  a  success 
for  them  that  is  a  sufficient  dividend  for  the  promoters.  But, 
in  addition  to  that,  the  exposition  should  be  to  the  public  a  fine 
example  of  unselfish  community  work,  and  if  a  nice  cash  bal- 
ance is  left  on  hand,  that  is  a  further  evidence  of  good  manage- 
ment on  the  promoter's  part.  If,  on  top  of  this,  a  financial 
statement  of  all  receipts  and  expenses  is  published,  this  means 
taking  the  public  into  further  confidence  and  helps  the  organi- 
zation in  the  next  big  thing  it  undertakes  in  its  work  of  build- 
ing up  the  city. 

Bear  this  in  mind :  The  public  is  often  indifferent  to  the 
work  of  an  organization,  and  even  some  of  its  members  are. 
Directors  and  secretaries  may  slave  for  them  day  and  night  and 
accomplish  great  things,  but  the  result  of  an  exposition  in  the 
community  will  surprise  in  the  way  it  will  please  the  people 
It  is  a  spectacular  thing,  a  dress  parade  proposition,  in  which 
they  can  all  participate  and  which,  compared  to  other  work, 
they  can  all  see.  An  exposition  will  awaken  them  as  nothing 
else  will. 


CHAPTER  VIII. 
Conventions  and  Publicity 

Conventions,  Their  Cost  and  Value 
By  L.  H.  LEWIS 

Conventions  unquestionably  are  a  known  factor  in  develop- 
ing the  transient  population  of  a  city  and  in  giving  a  commu- 
nity direct  advertising.  Every  convention  is  of  some  value  to  a 
city,  but  the  eje  of  an  expert  usually  is  required  to  determine 
fully  what  it  is.  Only  the  expert  can  tell  in  certain  cases 
whether  the  cost  was  greater  than  the  value.  Surface  condi- 
tions do  not  always  indicate  the  correct  value  of  a  convention. 
It  is  a  grievous  error  to  estimate  the  complete  value  of  a  con- 
vention by  the  money  spent  by  the  delegates.  There  are  spend- 
thrifts in  the  convention  business,  and  there  also  are  men  em- 
ployed w^ho  get  excellent  returns  on  the  money  invested.  The 
actual  cost  in  dollars  and  cents  of  financing  a  convention  rare- 
ly, if  ever,  determines  its  worth.  The  convention  business,  as  a 
w^hole,  is  exceedingly  profitable,  but  there  is  a  great  need  for 
standardization.  Much  money  and  effort  are  wasted.  Compe- 
tition for  conventions  is  as  keen  as  in  any  other  branch  of  com- 
mercial organization  work. 

Possibly  the  greatest  value  of  the  convention  is  the  pub- 
licity given  the  city  w^here  it  is  held.  Any  city  with  a  spark  of 
progress  invariably  seeks  to  advertise  its  advantages  broadcast. 
Publicity  for  a  city  of  the  most  valuable  kind  often  comes  free 
and  unsolicited  because  of  conventions.  It  is  frequently  inspi- 
rational and  usually  does  not  have  to  be  paid  for  in  dollars  and 
cents.  One  of  the  best  mediums  for  obtaining  this  highly  de- 
sirable publicity — that  is  so  different  from  any  other  brand  of 
advertising — is  through  the  convention. 

A  satisfied  convention  visitor  to  any  city  is  a  w^alking  ad- 
vertisement for  that  municipality.  Shrewd  advertisers  select 
the  publications  that  reach  the  greatest  number  of  persons  with 
w^hom  there  is  a  probability  of  doing  business.  The  cost  and 
the  quality  of  the  subscribers  to.  those  mediums,  of  course,  are 

134 


CONVENTIONS,  THEIR  COST  AND  VALUE.  136 

controlling  factoi-s  in  the  selection.  Practically  these  same  fac- 
tors must  be  considered  if  satisfactory  results  are  to  be  obtained 
in  the  convention  business.  There  are  some  mighty  good  and 
there  are  some  very  bad  conventions  meeting  regularly  through- 
out the  United  States.  There  are  more  brands  of  conventions 
than  colors  in  the  rainbow.  Some  cities  have  been  injured  more 
than  benefited  by  the  conventions  they  have  entertained.  One  of 
the  best  kind  is  that  which  helps  local  business  generally.  The 
convention  that,  in  addition  to  demanding  a  bonus  and  all  op- 
erating expenses,  disturbs  local  conditions,  is  a  mighty  poor  one, 
and  should  be  labeled  "not  wanted."  My  own  experience,  along 
with  the  information  I  have  gathered  recently,  convinces  me 
that  to  obtain  the  greatest  results  in  convention  work,  there 
should  be  the  highest  type  of  organization.  Use  should  be  made 
of  the  most  modern  business  methods,  and  efficiency  should  be 
the  motto  of  the  organization.  The  convention  business  is  one 
of  the  greatest  and  most  important  branches  of  commercial 
organization  work.  It  concerns  practically  every  commercial 
organization  in  the  United  States. 

Municipal  publicity  can  hardly  be  separated  from  conven- 
tion work.  They  are  closely  connected  in  innumerable  ways. 
Many  commercial  organizations  have  seen  the  necessity  and 
wisdom  of  organization  and  system  in  handling  convention 
work  and  quite  recently  there  have  been  established  bureaus 
and  departments  whose  activities  are  devoted  exclusively  to  this 
field.  Results  naturally  come  with  the  establishment  and  opera- 
tion of  a  compact,  well-oiled  organization — a  committee,  a  di- 
vision, a  department,  a  bureau — that  is  continually  in  service. 
I  have  failed  to  find  the  organization  or  the  individual  who 
professed  to  know  all  about  the  convention  game.  It  really  is  a 
game,  and  the  players  must  continually  keep  in  training  if  they 
stand  well  in  the  percentage  column.  Experience  gathered  in 
handling  one  convention  is  usually  helpful  in  dealing  with 
nnother.  The  successful  convention  bureau  keeps  records  and 
files  that  are  of  almost  inestimable  value. 

No  rules  have  ever  been  established  and  no  fixed  methods 
devised  for  either  obtaining  or  handling  conventions.  What 
might  be  a  satisfactory  arrangement  in  one  city  would  not 
work  well  in  another  city.  The  que^stion  of  handling  conven- 
tions by  cities,  particularly  in  entertaining  them  and  in  perfect- 
ing local  arrangements,  resolves  itself  into  the  fact  that  each 
city  has  a  course  of  individual  treatment. 


136  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Some  Conclusions  About  Conventions 

It  is  not  my  purpose  here  to  lay  down  a  definite  plan  for 
convention  work,  but  I  have  made  several  observations  that 
caused  me  to  reach  the  following  conclusions : 

Commercial  organizations  that  make  especial  provision  for 
convention  work  get  the  greatest  results  from  their  efforts. 

Buying  conventions  is  a  bad  practice  and  one  that  should 
be  stopped.  A  convention  that  has  to  be  bought  really  is  not 
worth  having.  The  general  tendency  among  cities  now  is  to 
offer  a  meeting  place  free  of  charge,  assist  in  making  the  local 
arrangements  AA'ith  members  of  the  organization  meeting  in 
convention,  and  help  in  advertising  the  convention.  It  is  in- 
variably a  mistake  for  a  city  to  try  to  get  a  convention  when  the 
local  members  of  the  organization  are  not  interested. 

Obtaining  conventions  is  nothing  more  than  a  high  type  of 
salesmanship.  A  successful  convention  man  is  a  diplomat 
skilled  in  the  art  of  disposing  of  his  goods  at  the  best  possible 
price  for  the  organization  he  represents. 

A  small  convention  frequently  benefits  a  city  more  than  a 
large  gathering.  The  greatest  possible  amount  of  care  should 
be  exercised  in  selecting  a  convention  so  as  to  eliminate  the 
undesirables.  This  can  only  be  done  through  proper  organiza- 
tion and  system  for  which  sad  experiences  usually  pave  the  way. 

More  satisfactory  results  in  convention  work  usually  are 
obtained  by  having  a  budget  so  that  those  in  charge  will  always 
be  acquainted  with  their  financial  condition.  Financing  con- 
vention work  has  been  a  mighty  big  problem  with  many  cities. 
The  general  public  sometimes  fails  to  appreciate  the  value  of 
conventions.  This  also  is  true  in  a  measure  of  those  who  are 
directly  benefited  when  the  convention  comes  to  town. 

It  is  a  fatal  mistake  for  any  city  to  endeavor  to  entertain 
a  convention  when  it  does  not  have  the  proper  facilities  to  do  so. 
There  is  a  wonderful  contrast  between  the  satisfied  and  the 
disgruntled  convention  visitor.  Both  always  remember  their 
treatment.  One  is  chanting  in  praises,  while  the  other  is  con- 
tinually bellowing  in  disgust  over  his  treatment.  The  success- 
ful merchant  endeavors  to  wrap  satisfaction  up  in  every  bundle 
while  the  most  successful  convention  organization  endeavors 
to  satisfy  eveiy  convention  visitor. 

There  is  a  certain  class  of  conventions  that  is  continually 
watching  the  horizon  for  easy  prey.    There  are  parasites  in  the 


CONA^BNTIONS,  THEIR  COST  AND  VALUE.  137 

convention  field — more  than  willing  to  take  all  and  give  prac- 
tically nothing  in  return.  It  is  this  class  of  conventions  that 
the  experienced  convention  man  will  not  touch.  The  unsophis- 
ticated led  astray  by  the  glowing  accounts  of  the  number  of 
delegates  and  the  money  they  will  spend  during  the  convention 
usually  pays  the  price  but  once — and  no  more. 

Competition  between  cities  for  conventions  is  very  keen 
and  has  developed  some  tendencies  that  are  unquestionably 
bad.  Representatives  of  some  cities  have  painted  a  picture  of 
their  town  that  never  did  nor  could  exist.  This  probably  has 
caused  some  conventions  to  accept  Avith  a  grain  of  skepticism 
the  statements  made  by  some  convention  men.  Probably  this 
is  why  some  conventions  ask  for  almost  ever3^thing  from  an  ap- 
propriation of  several  thousand  dollars  to  a  free  meeting  place 
and  really  expect  to  get  only  a  small  part  of  what  they  ask. 
Many  commercial  organization  executives  in  the  past  few  years 
have  remarked  that  conventions  have  been  spoiled.  I  myself 
think  there  has  been  ample  ground  for  this  belief,  but  I  think 
present  conditions  are  decidedly  improved. 

Considered  from  every  standpoint  the  convention  that  is 
really  worth  while  to  any  city,  if  properly  managed  and  ob- 
tained through  what  are  recognized  as  approved  methods,  is 
one  of  the  best  community  developers  on  the  market.  More 
conventions  mean  more  hotels,  more  new  money  and  a  brand  of 
advertising  that  money  can  not  purchase.  Many  cities  would 
not  have  coliseums  had  they  made  no  effort  to  get  conventions. 
Their  transportation  lines  would  not  be  modern  had  they  re- 
mained out  of  this  field.  Many  cities  would  be  without  some 
of  their  best  citizens  and  largest  manufacturing  concerns  had 
they  not  acted  the  part  of  convention  host.  The  price  of  real 
estate  and  property  rentals  would  not  be  as  high  in  many  cities 
had  no  conventions  been  held  there. 

The  Value  of  Conventions 

There  are  many  values  to  the  ordinary  convention  that  can 
hardly  be  estimated  definitely.  A  few  cities  over  the  country 
confine  their  efforts  to  certain  classes  of  conventions,  but  the 
larger  cities  especially  can  not  do  this  with  any  degree  of  suc- 
cess, for  reasons  that  are  obvious.  These  cities  that  specialize 
endeavor  to  obtain  conventions  Avhich  they  believe  will  give  the 
most  benefit  to  certain  lines  of  business  represented  in  their 


138  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITmS. 

town.  One  of  the  values  of  a  convention  that  is  difficult  to 
compute  is  that  wrong  impressions  about  a  city  frequently  are 
corrected  when  the  convention  visitor  comes  to  town  and  en- 
joys its  hospitality.  False  opinions  disappear  when  the  visitor 
sees  with  his  own  eyes  a  thing  that  had  been  pictured  to  him 
in  a  different  way. 

Here  is  one  of  the  educational  features  of  the  convention. 
The  educational  value  of  the  average  convention  is  one  of  its 
most  important  assets.  The  most  improved  business  methods 
frequently  are  taken  up  for  discussion  on  the  convention  floor. 
This  invariably  acts  as  a  stimulant  to  local  business.  An- 
nouncements often  are  made  of  the  latest  discoveries  in  the 
scientific  world.  A  city  neglects  golden  opportunities  when  it 
fails  to  impress  its  advantages  in  every  way  upon  the  mind  of 
the  convention  delegate. 

There  are  about  five  thousand  organizations  meeting  in 
convention  in  the  United  States.  Experts  figure  that  the  aver- 
age convention  visitor  will  spend  about  six  dollars  a  day.  Some 
cities  calculate  to  spend  from  fifty  cents  to  two  dollars  a  day 
for  entertainment  for  each  defegate.  Most  cities  follow  the 
plan  of  either  sending  a  representative  or  asking  the  local  mem- 
bers to  present  their  invitations  to  the  convention  itself  or  to 
the  committee  in  charge  of  selecting  the  next  convention  city. 
Most  commercial  organizations  usually  let  local  members  take 
complete  charge  of  the  arrangements  for  the  convention  because 
the  expenses  usually  are  kept  down  to  the  minimum  when  this 
plan  is  followed.  This  w^ould  not  apply,  of  course,  when  there 
are  not  enough  local  members  to  shoulder  the  burden. 

All  forms  of  entertainment  are  provided  through  the  in- 
genuity and  the  fertile  brain  of  the  convention  man.  The  means 
at  his  disposal  usually  governs  the  scope  of  the  entertainment. 
Some  cities  can  entertain  a  convention  successfully  with  one- 
half  the  expense  required  in  another  city  because  they  have  the 
facilities  and  the  natural  advantages. 

That  the  convention  business  is  profitable  is  shown  by  the 
fact  that  the  convention  industry  in  the  state  of  Colorado  ranks 
fourth.  In  1913  it  was  figured  that  in  that  state  the  conven- 
tion business  amounted  to  |25,000,000,  which  was  larger  than 
its  gold  output.  In  several  cities  the  city  administration  regu- 
larly makes  contributions  for  conventions,  thus  throwing  the 
burden  upon  every  citizen.     Several  cities  maintaining  highly 


ADVERTISING  BY  COMMERCIAL  ORGANIZATIONS.  139 

successful  convention  bureaus  spend  about  one  per  cent  of  the 
total  amount  raised  for  entertainment.  The  funds  in  some 
cities  are  raised  by  the  hotels  and  restaurants  giving  one-fourth, 
the  commercial  organization  one-half  and  the  public  generally 
one-fourth.  About  seventy-five  per  cent  of  their  funds  are 
spent  in  obtaining  conventions.  Many  commercial  organiza- 
tions annually  set  aside  a  certain  amount  for  convention  work, 
but  only  a  limited  number  keep  any  record  of  the  amount  spent 
for  entertainment  and  a  record  of  the  visitors  brought  to  their 
cities  each  year  by  conventions.  Most  commercial  organiza- 
tions always  endeavor  to  obtain  funds  for  convention  work 
from  outside  sources.  They  endeavor  to  raise  funds  for  each 
convention  in  this  manner  when  they  do  not  have  a  special 
fund  for  the  work. 

A  word  of  warning  would  seem  to  be  in  order  now.  The 
secretary  who  knowingly  disseminates  wrong  information  about 
a  convention  to  a  fellow  secretary  is  guilty  of  high  treason.  It 
is  far  better  to  give  no  information  at  all  than  to  lead  an  in- 
quirer astraA^  Give  every  inquirer  the  most  reliable  informa- 
tion, for  who  can  tell  w^hen  the  tables  will  turn.  The  practice 
of  charging  exorbitant  hotel  rates  because  of  conventions  is  a 
question  that  probably  will  demand  the  consideration  of  legis- 
latures in  more  states  than  one  during  the  next  few  years. 
This  is  without  the  control  of  the  average  convention  organiza- 
tion, but  the  convention  man  will  be  doing  an  honorable  service 
if  he  communicates  the  views  of  the  ordinary  delegate  in  the 
premises  to  the  hotel  proprietors. 

City  Publicity 

Portion  of  a  Report  on  Advertising  by  Commercial  Organizations 

By  CARL  DEHONEY  and 
THORNDIKE  DELAND 

^ote :  The  following  constitutes  the  deductions  made  from  voluminous 
material  on  the  subject  gathered,  as  the  result  of  an  exhaustive  questionaire, 
from  all  parts  of  the  United  States. 

A  review  of  the  facts  brought  out  in  our  survey  together 
with  other  experiences  and  data  on  the  subject  lead  us  to  sug- 
gest that  the  dominating  features  of  the  situation  as  it  exists 
today  are : 


140  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES: 

That  commercial  organizations  have  as  yet  only  scratched 
the  surface  of  this  great  question;  have  only  begun  to  realize 
its  vast  importance  both  for  their  own  development  and  the 
development  of  their  cities;  that  out  of  the  present  confusion 
and  conflict  of  opinion  there  will  eventually  come  an  approach 
at  least  to  a  more  scientific  handling  of  the  problem. 

That,  while  there  is  marked  difference  in  the  problem  of 
advertising  a  commercial  organization  or  a  city  and  advertising 
a  commercial  product  for  sale  and  consumption,  yet  there  are 
sufficient  points  of  similarity  to  enable  the  municipal  adver- 
tiser to  profit  by  the  more  standardized  experiences  on  the  pro- 
curing of  commercial  advertising. 

That  some  of  the  difficulties  met  in  organization  and  mu- 
nicipal publicity  differing  from  those  of  commercial  advertis- 
ing are: 

1st — The  publicity  manager  of  a  commercial  organization  being  re- 
sponsible to  a  larger  number  of  individuals  than  in  the  case  of  the  business 
corporation  is  frequently  badly  hampered  in  carrying  out  in  full  his  plans 
along  proper  lines. 

2d — That  frequently  not  having,  or  appearing  to  have  perhaps,  tangible 
products  or  things  for  sale,  it  is  more  difficult  to  demonstrate  actual  results. 

3d — The  frequent  changing  of  personnel  of  governing  boards  and  com- 
mittees resulting  in  changing  of  ideas,  often  prevent  the  full  carrying  out  of 
campaign  and  render  abortive  what  otherwise  might  have  splendidly  suc- 
ceeded. 

These  are  difficulties  which  the  publicity  manager  and  his 
committee  must  succeed  in  overcoming. 

Some  of  the  points  of  similarity  in  advertising  a  commer- 
cial organization  or  a  city  and  advertising  a  commercial  product 
are: 

First:  The  absolute  necessity  of  thoroughly  developing  a 
complete  plan  based  upon  a  thorough  analysis  of  the  whole 
situation  and  including  not  only  the  first  steps  leading  up  to 
the  campaign  and  the  campaign  itself,  but  full  provisions  for 
adequate  follow-up  to  take  full  advantage  of  results. 

A  commercial  advertiser,  before  spending  any  money,  must 
analyze  his  product,  his  competition,  his  distribution,  his  mar- 
ket, and  the  various  methods  for  bringing  product  and  market 
together.  In  a  similar  way  a  city,  before  advertising,  should 
first  thoroughly  analyze  itself,  study  its  strength  and  its  weak- 
ness, its  competition  in  different  directions,  its  market,  its  facili- 
ties for  bringing  its  market  in  closer  touch,  such  as  transporta- 


ADVERTISING  BY  COMMERCIAL  ORGANIZATIONS.  141 

tiou  facilities,  etc.,  and  the  best  method  for  producing  the  best 
results. 

Second :  That  the  nearer  the  commercial  organization  can 
come  to  offering  a  definite  thing  to  sell,  the  more  certain  will  an 
advertising  campaign  succeed.  If  a  city  has  a  good  definite 
real  estate  proposition,  if  it  offers  definite  opportunities  for 
new  settlers  and  the  investment  of  new  capital,  definite  ad- 
vantages for  the  location  of  particular  classes  of  industries, 
recreation  and  tourist  advantages,  a  definite  market  situation 
differing  from  its  competitors,  it  can  hope  for  success  in  a  pub- 
licity campaign.  If  you  study  the  campaigns  Avhich  have  suc- 
ceeded you  will  find  they  involve  some  definite  proposition 
which,  after  all,  is  only  a  logical  business  proposition. 

Third :  That  cities  Avhich  take  up  successfully  the  question 
of  publicity,  must  first  make  sure  they  are  themselves  "right" 
when  subjected  to  the  acid  test.  If  not,  they  must  make  them- 
selves right,  and  the  first  step  is  to  arouse  the  citizenship  gen- 
erally to  a  greater  knowledge  of  the  city's  advantages  and  re- 
sources and  greater  enthusiasm  for  its  development.  This  has 
been  the  basis  of  "Know  your  city"  campaigns  and  industrial 
surveys. 

If  the  people  of  a  city  can  be  aroused  to  the  necessity  of 
doing  things  for  themselves,  they  can  often  bring  more  prestige 
and  publicity  to  the  community  than  all  the  advertising  experts 
and  committees  in  the  country  can  produce.  A  notable  instance 
is  Cleveland.  It  spends  no  money  in  the  national  organizations 
on  trade  papers,  apparently  sends  out  little  publicity  matter, 
does  little  along  convention  lines,  yet  no  city  has  received  more 
favorable  publicity  within  the  past  few  years.  Active  Cleve- 
landers  have  done  it. 

In  this  feature  of  the  work  the  progressive  chamber  of 
commerce  can  capitalize  this  sentiment  to  "sell"  its  member- 
ships and  increase  its  revenue  for  work,  and,  therefore,  this 
whole  question  of  advertising  the  association  is  only  another 
phase  of  the  question  of  membership  and  revenue,  without  which 
no  organization  can  live.  Here  is  where  the  commercial  or- 
ganization has  a  definite  proposition  it  can  hook  up  with  ac- 
cepted advertising  principles. 

In  its  local  work,  the  commercial  organization  finds  its 
best  publicity  medium  in  its  daily  newspapers,  as  evidenced  so 
generously  in  the  facts  brought  out  by  this  survey,  showing  that 


142  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

commercial  organizations  in  the  United  States  receive  publicity 
which  would  cost  at  reading  matter  rates  over  five  million  dol- 
lars a  year.  The  commercial  organization  will  find  paid  space 
in  these  papers  profitable  if  it  has  some  definite  project  to  put 
across,  or  to  retain  and  increase  its  support. 

In  municipal  advertising,  the  viewpoint  is  veering  away 
from  the  procuring  of  miscellaneous  free  publicity,  and  while 
cities  will  and  should  continue  to  get  all  the  free  publicity  they 
can,  they  will  come  more  and  more  to  consider  buying  what  they 
want  from  the  mediums  experience  has  shown  most  capable  of 
results. 

In  municipal  publicity,  just  as  in  commercial  advertising, 
great  value  can  be  created  for  an  attractive  and  logical  slogun 
or  design,  corresponding  to  the  commercial  trademark,  by  using 
same  throughout  all  kinds  of  publicity,  and  hammering  it  home 
persistently  until  it  comes  to  stand  in  the  public  mind  for  that 
city. 

If  a  city  has  made  itself  "right;"  if  it  has  an  enthusiastic 
citizenship  in  touch  with  its  aspirations  and  organized  to  fur- 
ther its  plans ;  if  it  has  a  definite  publicity  plan  and  proposition 
(a  good  slogan  or  trade  mark  Avill  tell  the  truth  and  keep  on 
telling  it  in  season  and  out  of  season)  it  will  deliver. the  goods 
whenever  called  upon,  and  will  follow  up  its  prospects  it  will 
Avin  through  publicity. 


CHAPTER  IX. 
Trade  Extension  Tours 

The  Mission  of  Trade  Extension  Journeys 
By  WILLIAM  GEORGE  BRUCE 

It  ma}'  not  be  amiss  to  discuss  the  purposes  of  annual 
trade  extension  journeys,  conducted  under  the  auspices  of  com- 
mercial organizations,  describe  the  attitude  of  the  visiting  job- 
ber and  manufacturer  towards  the  inland  retailer,  and  point 
out  the  benefits  to  be  derived  by  all  the  factors  involved. 

The  larger  and  average  sized  commercial  centers  of  vari- 
ous sections  of  the  country  have  in  recent  years  engaged  to  a 
considerable  extent  in  socalled  trade  excursions  or  merchants' 
trips.  Their  value,  or  at  least  their  popularity,  is  established. 
But,  it  may  also  be  well  to  analyze  more  closely  just  wherein 
and  to  what  extent  the  trade  extension  journeys  are  beneficial 
to  the  business  houses  that  engage  in  them  and  to  the  city  that 
promotes  them.  The  benefits  or  advantages  derived  from  them 
may  be  summarized  as  follows : — 

First :  They  promote  the  spirit  of  friendship  among  those 
who  participate  in  trade  extension  journe3^s.  Business  men  are 
afforded  an  opportunity  to  become  more  intimately  acquainted 
with  their  competitors,  learn  to  appreciate  one  another  as  man 
against  man,  with  the  tendency  to  substitute  wholesome  compe- 
tition for  unfriendly  rivalry. 

Second :  The  members  or  managers  of  a  business  firm  who 
participate  in  such  trips  have  an  opportunity : 

(a)  To  meet  their  customers  in  person  which  is  usually 
appreciated  and  which  tends  to  strengthen  the  business  rela- 
tions existing  between  the  firms  and  their  customers. 

(b)  These  trips  are  apt  to  prompt  immediate  orders  or 
pave  the  way  for  future  orders.  Frequently  a  sufficient  num- 
ber of  orders  are  secured  by  business  men,  the  profits  upon 
which  cover  the  cost  of  several  trips. 

(c)  The  visiting  merchant  is  afforded  an  opportunity  to 
see  his  customer  in  his  home  environments  and  under  condi- 
tions which  furnish  an  answer  to  the  questions:  "Is  this  a 
careful  business  man?  Has  he  a  good  store,  centrally  located? 
Does  he  keep  his  stock  in  good  condition?"    In  the  adjustment 

143 


144  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

of  credits  it  is  important  to  know  something  about  his  custom- 
er's methods  of  doing  business  and  the  reputation  he  has  at 
home. 

Third:  Affording  an  opportunity  to  those  who  have  no 
trade  in  the  region  visited  to  study  its  business  possibilities. 
It  has  frequently  developed  that  business  houses  have  found  it 
to  their  advantage  to  place  salesmen  in  a  field  after  visiting 
the  same  that  had  before  such  visit  seemed  unpromising.  Thus, 
many  new  trade  accounts  have  followed  as  the  result  of  these 
trade  extension  journeys. 

Fourth:  A  distinctive  gain  is  made  for  the  city  that  en- 
gages in  these  trips.  If  the  firms  and  individuals  engaging  in 
them  did  not  derive  an  immediate  benefit,  there  is  still  an  ad- 
vertising value  which  goes  to  the  city.  It  adds  a  prestige  to 
such  city  which  could  be  gained  in  no  other  way. 

From  the  Standpoint  of  the  Cities  Visited 

Experience  has  taught  that  the  expressions  of  good  will 
and  friendship  showered  upon  trade  emissaries  of  this  character 
along  the  routes  traveled  are  usually  of  the  most  sincere  and 
cordial  character.  The  personal  expressions  as  Well  as  the 
numerous  speeches  made,  taken  in  their  entirety,  reveal  the 
elements  of  genuine  hospitality,  geniality  and  goodfellowship. 
While  the  attitude  of  the  smaller  centers  of  population  is  not 
entirely  selfisli  in  character  there  is  usually  a  reciprocal  spirit 
which  forms  an  important  stimulus  towards  strengthened  busi- 
ness relations. 

The  basis  for  the  friendly  attitude  on  the  part  of  the  small- 
er town  is  usually  found  in  the  following: 

First:  A  local  pride  in  the  thought  that  an  important 
trade  extension  train  honors  the  town  with  a  visit.  Such  events 
are  comparatively  rare. 

Second:  A  satisfaction  in  being  afforded  an  opportunity 
to  point  to  the  home  town's  achievements  and  possessions. 
Whether  the  local  commercial,  industrial  or  institutional  in- 
terests are  large  or  small,  the  resident  citizen  is  always  proud 
to  dwell  upon  them. 

Third :  The  authorities  usually  recognize  the  fact  that  hos- 
pitality is  a  virtue  which  applies  to  communities  as  well  as  to 
individuals,  and  that  hospitality  manifested  on  occasions  of  this 
kind  denotes  also  the  enterprise  and  public  spirit  of  a  people. 


THE  MISSION  OF  TRADE  EXTENSION  JOURNEYS.  145 

Fourth:  That  trade  relations  between  the  larger  and 
smaller  cities  ar^  reciprocal;  that  the  products  of  the  farm 
which  maintain  the  small  city  must  find  their  ultimate  outlet 
for  consumption  in  the  larger  centers  of  population;  that  the 
manufactured  article  of  the  large  city  is,  in  turn,  essential  to 
the  life,  activities  and  comforts  of  the  farm  and  the  small  city. 

Attitude  of  the  Visiting  Merchants 

The  responses  usually  made  by  the  executive  officers  and 
members  of  the  trade  extension  journey  may  be  summed  up  in 
the  f ollow  ing  thoughts  and  expressions : 

First:  That  commerce  knows  no  limitations;  that  state 
lines  are  created  for  purposes  of  government  only;  that  an 
interstate  commerce  is  consistent  with  the  American  idea  and 
conducive  to  the  welfare  and  prosperity  of  the  whole  country ; 
that  we  are  one  people,  under  one  flag,  w^ith  one  and  the  same 
destiny. 

Second :  That  the  progressive  merchant  of  the  large  city 
believes  in  the  integrity,  mission  and  purposes  of  the  smaller 
units  of  population;  that  the  smallest  villages  alike  with  the 
great  metropolis  performs  a  function  in  the  economic,  civic, 
educational  and  moral  Avelfare  of  the  nation. 

Third :  That  the  price  list,  quality  of  goods,  taste  and' 
personal  contact  and  the  element  of  friendship  cannot  be  ig- 
nored or  overlooked. 

Fourth :  That  honesty  and  integrity  are  a  permanent  and 
self-accruing  asset  in  business  and  that  the  merchants  come 
with  honorable  motives,  with  clean  hands  and  clean  intentions. 

Fifth :  That  the  commercial  and  industrial  center  means 
to  compete  aggressively  with  other  markets;  to  apply  enter- 
prise, energy  and  industry  in  developing  its  possibilities. 

Sixth :  To  tell  the  world  what  their  city  is,  what  it  has, 
and  what  it  stands  for ;  to  tell  of  its  natural  advantages,  its 
geographical  location;  its  commercial  and  industrial  achieve- 
ments, its  hopes,  its  aspirations  and  its  future. 

Administration  and  Management 

The  trade  extension  journeys  heretofore  undertaken  have 
been  uniformly  successful  in  the  ends  and  purposes  which  they 
have  aimed  to  serve,  namely  to  promote  and  strengthen  the 
business  relations  between  a  given  commercial  center  and  the 
outside  world.    They  have  also  been  conducted  upon  a  self-sus- 


14G  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

taining  basis.  The  expense  has  been  almost  wholly  borne  by 
those  who  have  participated  in  them. 

In  order,  however,  that  the  greatest  degree  of  service  be 
attained  in  point  of  participation,  in  the  selection  of  an  itin- 
erary, in  securing  a  reasonable  rate  of  per  capita  cost,  in  secu- 
ring an  efficient  train  service,  in  prompting  a  cordial  reception 
and  in  attaining  favorable  publicity  in  the  towns  to  be  visited, 
the  merchants'  trips  have  been  planned  with  discriminate  care 
months  in  advance  and  with  a  supervisory  care  on  the  part  of 
committees,  executive  officers  and  board  of  directors.  More 
especially  must  this  be  done  if  the  trips  are  to  be  made  self- 
sustaining  in  point  of  cost  and  effective  in  desired  results. 

The  committees  entrusted  with  the  immediate  and  detail 
arrangements  are  apt  to  become  engrossed  in  certain  phases 
of  the  trip  and  lose  sight  of  the  larger  problems  involved  and 
the  ultimate  outcome  of  the  financial  end  of  the  project.  Here 
action,  Avhich  shall  be  timely  enough  so  as  to  make  the  veto 
power  of  the  board  effective  and  practical  both  as  to  the  itiner- 
ary and  the  cost  involved,  is  recommended.  The  following 
suggestions  are  usually  observed : 

First:  That  all  trips  are  planned  with  a  view  of  making 
them  self-sustaining  in  point  of  cost. 

Second :  That  the  committee  plan  its  itinerary  during  the 
month  of  January  of  each  year  for  the  trade  excursion  to  be 
undertaken  during  the  month  of  June  following,  and  that  a 
list  of  probable  participants  be  prepared  and  acceptances  be 
secured  as  early  as  possible. 

Third :  That  the  committee  present  to  the  board  of  direc- 
tors a  report  on  the  next  merchants'  trip,  the  itinerary  and  date 
for  same,  the  number  of  prospective  participants,  the  arran Ele- 
ments for  transportation,  specifying  cost  for  mileage,  meals  and 
sleeping  car  service,  accompanied  by  estimates  as  to  the  total 
receipts  and  expenditures  involved. 

Trade  Extension  Through  Excursions 

By  WALTER  S.  WRITTEN 

In  the  serious  business  of  city,  state  and  empire  building, 
the  trade  excursion  or  trade  trip  is  as  new  as  it  has  proved 
important.  It  is  to  the  city  what  the  drummer  is  to  the  indi- 
vidual jobber.     In  short,  the  trade  trip  is  the  city's  drummer. 


SHORT  TRIPS  FROM  A  JOBBING  CENTER.  147 

Yet,  the  city's  drumuier  differs  from  the  jobber's  drummer  in 
one  respect — while  the  latter  takes  orders,  the  former  only  an- 
ticipates them. 

It  should  not  be  the  aim  of  the  excursionists  to  write 
orders.  On  the  other  hand,  they  should  avoid  it  entirely.  The 
business  of  the  excursion  is  larger.  It  is,  first  of  all,  to  plant 
the  seed;  the  harvest,  as  in  the  course  of  Nature,  should  come 
later. 

If  an  attempt  to  take  orders  is  made,  it  leaves  a  lasting 
impression  in  the  mind  of  the  otlier  fellow  that  you  were  ^^after 
something."  Such  an  impression  Avould  be  fatal  to  the  object 
of  the  excursion.  It  should  scatter  broadcast  the  idea  of  reci- 
procity between  merchant  and  merchant.  In  other  words,  we^ 
a  city,  have  something  to  olTer  you,  namely,  unexcelled  trans- 
portation facilities,  a  market  of  wider  scope,  this  or  that  which 
you  cannot  get  elsewhere.  You  gain  a  psychological  vantage 
point  when  the  fact  of  your  offering  is  emphasized. 

Leave  as  much  as  possible  behind  to  serve  as  a  reminder 
of  the  fact  that  you  have  been  there.  This  includes  trinkets 
for  the  school  children  and  high  class  advertising,  such  as  a 
tastily  gotten  up  pamphlet  containing  views  of  the  city  and 
descriptions  of  its  places  of  interest — in  short,  an  advertisement 
with  the  advertising  idea  not  too  obtrusive.  Such  literature 
will  probably  adorn  a  desk  or  a  counter  for  months,  and,  before 
it  reaches  the  w^aste  basket,  be  picked  up  and  read  by  hundreds. 
And,  of  course,  there  is  alw^ays  the  advertising  of  the  individual 
firms. 


Short  Trips  From  a  Jobbing  Center 

By  E.  H.  CLIFFORD 

In  most  cities  which  maintain  a  commercial  organization, 
one  of  the  important  functions  of  that  organization  is  to  ar- 
range trade  extension  trips  which  afford  the  members  an  op- 
portunity to  repay  to  the  towns  in  their  trade  territory  the 
visits  made  by  the  merchants  and  citizens  of  the  town.  It  is 
also  a  method  by  which  they  extend  their  trade  relations  and 
in  various  cities  different  plans  have  been  evolved  to  attain  this 
end.  It  is  generally  conceded  that  trips  of  this  kind  are  worth 
w^hile — that  the  item  of  expense  is  a  legitimate  charge  to  adver- 


148  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

tising,  and  the  members  of  commercial  organizations  take  great 
interest  in  them  and  usually  cooperate  in  suggesting  the  places 
to  visit.  They  promote  a  feeling  of  good  fellowship  and  many 
acquaintances  are  formed  that  are  lasting  and  agreeable. 

Towns  visited  always  plan  some  kind  of  a  reception,  gov- 
erned by  the  length  of  the  stay  with  them,  so  the  members  mak- 
ing the  trip  return  home,  in  most  instances,  satisfied  that  it 
has  been  worth  the  time,  trouble  and  expense  involved. 

Long  Journeys 

Pittsburgh  in  1912  visited  a  great  number  of  cities  in  the 
Middle  West  and  created  quite  an  amount  of  interest  by  their 
special  train  which  contained  models  and  exhibits  of  their 
various  manufactories.  They  had  quite  an  attractive  train 
and  a  large  party.  A  few  ladies  were  in  this  party,  which  is  a 
new  departure  in  trade  trips  as  usually  only  men  take  part  in 
them.  In  the  cities  of  the  Middle  West,  up  to  this  time,  nothing 
so  elaborate  has  been  tried,  as  the  length  of  time  consumed  on 
the  trips  is  usually  one  week. 

The  Alaska  Bureau  of  the  Seattle  Chamber  of  Commerce 
made  an  8,000  mile  tour  through  Alaska  and  the  Yukon,  which 
is  considered  to  be  the  longest  tour  of  Alaska.  Some  Great 
Lakes  cities  have  used  lake  steamers  and  call  their  trips 
"cruises."  Several  cities  have  tried  automobiles.  The  plan  is 
usually  governed  by  local  conditions,  but  the  details  are  nearly 
always  the  same,  as  the  object  is  to  satisfy  the  travelling  party 
and  make  things  as  pleasant  as  possible  for  them  during  the 
trip,  and  to  create  a  favorable  impression  in  the  cities  visited 

Music  is  always  one  of  the  first  things  taken  into  considera- 
tion, as  it  is  generally  admitted  that  a  good  band  is  one  thinjr 
that  will  liven  up  the  members  of  the  party  and  also  attra(»1 
attention  in  the  towns  visited.  Other  means  of  entertainment 
are  usually  provided,  most  parties  having  among  their  mem- 
bers a  few  who  will  make  up  quartets  and  double  quartets. 
Souvenirs  are  expected,  and  it  is  customary  for  the  members 
making  these  trips  to  provide  themselves  with  something  that 
will  be  retained  by  the  people  in  the  towns  visited.  This,  of 
course,  is  a  detail,  and  is  Avorked  out  by  parties  making  the  trip. 
Badges  are  worn  by  members.  Some  sort  of  a  uniform  or  cap 
is  sometimes  suggested. 


SHORT  TRIPS  FROM  A  JOBBING  CENTER.  149 

One-Day  Outings 

Most  of  the  commercial  organizations  plan  trips  of  a 
week's  duration,  traveling  many  miles  irom  their  home  city, 
and  to  a  different  territory  each  year,  having  on  their  train  a 
diner  and  sleeping  cars.  In  St.  Joseph  we  followed  this  plan 
for  a  number  of  years,  but  for  the  last  two  years  our  members 
wishing  us  to  offer  them  something  of  a  different  nature,  we 
have  adopted  the  idea  of  a  one-day  trip — leaving  St.  Joseph  in 
the  early  morning,  making  our  destination  some  point  about  one 
hundred  miles  from  home,  returning  the  same  night,  taking 
dinner  and  supper  at  towns  en  route.  This  plan  has  met  with 
such  universal  favor  with  our  members  that  we  are  of  the  opin- 
ion it  will  be  quite  a  long  while  before  they  will  call  upon  us 
to  arrange  for  the  week  trips  for  them,  as  we  have  found  that 
it  is  much  easier  for  our  members  to  lay  aside  their  business 
for  one  day — five  or  six  times  a  year — than  for  them  to  plan 
for  a  week's  absence.  It  also  enables  a  larger  percentage  of 
our  members  to  make  the  trip,  as  the  cost  is  nominal,  as  for 
the  five  trips  which  were  planned  last  year,  any  one  of  our 
members  who  made  all  of  them,  was  only  called  upon  to  spend 
$32.50.  We  have  discarded  the  diner  and  commissary  car  from 
our  trains,  as  our  plan  for  taking  care  of  the  meals  en  route 
is  for  us  to  suggest  to  the  ladies  of  some  church  in  the  town 
where  we  wish  to  take  dinner  or  supper,  that  they  serve  us, 
we  guaranteeing  them  that  we  will  pay  for  not  less  than  150 
meals,  at  an  average  price  of  50c  each,  and  for  w^hatever  num- 
ber there  are  above  our  guarantee.  Our  experience  has  been 
that  this  plan  is  satisfactory  to  both  the  ladies  of  the  church 
and  to  our  members  and  we  have  been  fortunate  in  having  some 
very  fine  meals  served  to  us  under  this  plan.  We  much  prefer 
this, to  going  to  a  hotel  for  the  service  is  much  quicker,  and  as 
most  of  the  supplies  and  labor  are  donated  by  the  ladies  of 
the  church  serving  the  meal,  it  leaves  with  their  church  treasury 
a  nice  sum,  and  also  affords  our  members  making  the  trip  an 
opportunity  of  meeting  with  some  of  the  best  people  in  the  town 
we  visit. 

We  plan  our  trips  to  make  our  last  stop  in  the  evening 
about  5 :30,  trying  to  arrange  it  so  that  this  visit  will  be  at  the 
largest,  or  one  of  the  largest,  towns  in  the  territory,  spending 
about  two  hours  there,  and  we  are  usually  entertained  by  the 
local  commercial  club.     It  takes  us  about  three  hours  to  get 


150  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

back  home,  as  we  plan  no  stops  on  the  return  trip,  this  part  of 
the  trip  being  devoted  to  the  social  entertainment  of  the  mem- 
bers of  our  party,  and  with  this  in  view  we  call  our  trips  ''Get 
Acquainted  Trips,"  as  we  find  that  a  great  number  of  our  mem- 
bers wish  to  meet  with  one  another  and  this  affords  them  that 
opportunity. 

We  do  not  carry  a  commissary  car  on  the  going  trip,  as  we 
have  found  this  to  be  an  objectionable  feature  to  a  great  many 
of  the  toAvns  visited,  and  it  is  also  objected  to  by  quite  a  few 
of  our  members.  Whatever  liquid  refreshments  are  desired  are 
sent  to  the  end  of  the  line,  and  upon  the  return  trip — as  there 
is  only  our  own  party  in  the  train — those  of  our  members  who 
wish  it  are  then  served.  We  have  found  this  a  very  satisfactory 
way  of  handling  a  very  difficult  proposition. 

We  do  not  limit  the  members  of  our  party  to  any  individual 
line  of  business,  believing  that  a  trip  given  by  our  club  should 
be  open  to  any  of  our  members  in  good  standing,  and  although 
at  first  there  Avas  some  criticism  at  bringing  the  jobber  and  re- 
tailer together  in  visiting  the  different  towns,  this  has  been 
overcome,  as  there  are  so  many  in  the  party  that  the  business 
identity  of  the  member  making  the  trip  is  lost  sight  of. 


Trade  Extension  Trips — -Methods  and  Results 

By  LEROY  M.  GIBBS 

While  trips  of  this  character  are  more  or  less  common  to 
all  sections  of  the  country,  the  development  of  the  United 
States  from  the  East  to  the  West  has  resulted  in  the  eastern 
section  becoming  primarily  a  manufacturing  section,  selling 
its  product  largely  through  the  jobber.  The  central  and  western 
sections,  with  less  manufacturing,  w^ith  great  distributing 
houses  wholesaling  the  products  of  many  milJs  and  factories 
throughout  a  vast  territory  given  over  in  the  main  to  agricul- 
ture, mining  and  forest  products,  with  fewer  cities,  are  con- 
cerned with  selling  goods  to  the  small  town  retailer.  Owing 
to  the  fact  that  in  the  eastern  states,  cities  and  towns  of  con- 
siderable trade  importance  are  located  in  close  proximity  to 
each  other,  the  trade  territory  or  sphere  of  influence  covers  a 
comparatively  small  area ;  that  is,  while  in  a  given  area  might 
be  located  a  great  city  enjoying  a  nation-wide  trade,   there 


TRADE  EXTENSION  TRIPS— METHODS  AND  RESULTS.  151 

would  be  perhaps  half  a  dozen  cities  within  a  radius  of  one 
hundred  or  two  hundred  miles  enjoying  a  considerable  jobbing 
business.  In  the  central  and  western  states  with  their  vast 
areas  and  the  greater  distance  between  cities  there  are  many 
points  which  become,  through  various  forces,  distributing  cen- 
ters for  great  stretches  of  country,  these  centers,  in  most  cases, 
being  situated  at  such  distances  from  each  other  as  to  necessi- 
tate an  over-night  journey. 

One  secretary  has  said  that  the  average  trade  territory  is 
in  the  form  of  an  ellipse,  with  the  interested  city  located  in  the 
eastern  end  of  the  ellipse.  This  is,  of  course,  particularly  true 
of  the  jobbing  territor}^  of  the  western  city  and  is  the  direct 
result  of  the  adjustment  of  freight  rates.  Perhaps  this  applies 
more  to  cities  situated  west  of  Mississippi  River  valley  points 
which  meet  rates  based  on  water  transportation. 

It  is  self-evident  that  favorable  inbound  freight  rates  are 
of  the  greatest  importance  to  a  city  as  a  jobbing  center.  Equal- 
ly important  are  the  outbound  rates  enabling  the  city  to  meet 
competition.  Freight  service,  so  arranged  as  to  provide  prompt 
delivery  of  goods,  satisfactory  prices  and  a  friendly  interest 
and  acquaintance  with  the  merchant  and  the  territory  served,  is 
an  important  factor  in  building  up  trade. 

The  Importance  of  Trade  Trips 

Such  information  as  I  have  been  able  to  gather  indicates 
that  there  are  75  cities  carrying  on  annual  trade  trips,  going 
out  for  a  week  and  covering  anywhere  from  1,000  to  2,000 
miles,  while  there  are  a  still  greater  number  of  smaller  towns 
with  restricted  territory  going  out  by  automobile  for  one  or 
two-day  trips. 

In  general,  a  trade  extension  trip  has  as  its  object,  not 
only  the  increase  of  trade  tluit  may  result  to  the  individual 
jobber  or  manufacturer  through  meeting  his  customers  and 
possible  buyers,  but  the  strengthening  of  the  city  as  the  logical 
center  of  that  section — not  only  as  a  trading  point,  but  the  com 
mercial,  social  and  educational  center  —  in  short,  the  "big 
town"  to  its  constituency. 

Four  General  Methods 
There  are  perhaps  four  general  methods  of  trade  extension 
trips : 


152  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Those  by  train  and  ordinarily  covering  a  five  or  six-day 
or  possibly  a  two-week  period,  in  a  more  or  less  extended  trade 
territory. 

By  automobile  and  usually  of  not  more  than  one  or  two 
days'  duration,  covering  nearby  towns. 

Trolley  trips  ordinarily  limited  to  one  day. 

Trips  taken  by  a  few  great  cities  w4th  enormous  manu- 
facturing interests  and  in  which  only  the  larger  towns  or 
cities  are  visited,  what  we  may  term,  a  major  geographical 
section. 

Some  of  the  Great  Lakes  cities  and  some  coast  cities  make 
trips  by  boat,  but  these  for  the  most  part  are  more  in  the  nature 
of  pleasure  excursions,  but  none  the  less  valuable. 

The  Objects  of  the  Trips 

AVhile  some  hold  that,  trade  being  the  major  purpose  of 
the  institution,  the  advantages  of  the  home  city  should  be 
dwelt  on  at  all  times.  The  preponderance  of  opinion  seems  to 
be  in  favor  of  establishing  friendly  relations  and  that  trade 
will  follow  as  a  matter  of  course. 

Only  in  a  comparatively  few  cases  is  an  effort  made  to 
solicit,  and  some  organizations  absolutely  prohibit  the  carr3dng 
of  order  books.  The  tendency  seems  to  be,  however,  to  leave 
this  to  the  judgment  of  the  individual  with  few  efforts  being 
made  to  actually  take  orders  on  such  a  trip. 

A  feature  that  appeals  to  me,  as  of  considerable  value  and 
yet  adopted  apparently  by  few  cities,  is  that  of  sending  an  ad- 
vance man  over  the  territory  to  be  visited.  This  man  calls  upon 
the  representatives  of  the  commercial  organization  or  the  town 
officials,  arranges  any  program  that  is  to  be  carried  out,  and 
other  details.  He  also  sees  the  leading  merchants,  and,  while 
advising  them  of  the  contemplated  visit,  gets  their  viewpoint, 
learns  where  they  buy  the  greater  part  of  their  goods,  why  a 
competing  city  may  be  favored,  what  deliveries  are  made  from 
his  city,  and  of  any  misunderstandings  that  may  exist.  Upon 
his  return  he  makes  a  report  w^hich  is  published  and  a  copy 
furnished  each  member  of  the  party  for  use  during  the  coming 
trip. 

Many  business  men  have  come  to  realize  that  the  thing  of 
greatest  importance  is  the  economic  development  of  the  country, 
and  as  a  result  have  carried  out  through  trips  of  this  nature 


TRADE  EXTENSION  TRIPS—METHODS  AND  RESULTS.  153 

campaigns  of  education,  preaching  in  regions  subject  to  drouth 
where  corn  is  a"  precarious  crop,  the  growing  of  kaftir,  milo 
maize  and  sorghums,  which  are  better  adapted  to  such  condi- 
tions; in  a  one-crop  section,  diversified  farming;  in  a  stock-rais- 
ing country,  the  breeding  of  better  stock;  in  a  fruit  section, 
better  grading,  packing  and  marketing,  such  subjects  always 
being  handled  by  experts  carried  for  the  purpose.  I  have  in 
mind  a  case  where  through  such  propaganda,  carried  out  over 
a  period  of  yeai*s  in  a  trade  territory,  hundreds  of  cars  of 
peanuts  are  now  being  raised  where  previously  they  were  an 
unknown  crop. 

Methods  for  Conducting  Trips  by  Train 

Some  organizations  seem  to  favor  the  appointment  of  a 
considerable  number  of  committees  to  handle  the  various  de- 
tails, but  I  am  inclined  to  favor  one  strong  committee  which 
handles  the  entire  matter.  The  question  of  first  importance 
is  the  arrangement  of  the  itinerary,  that  the  train  may  move 
on  schedule,  that  there  may  be  time  enough  in  the  principal 
trade  centers  and  not  too  much  at  the  less  important  stops- 
There  is  a  growing  sentiment,  however,  against  merely  rushing 
into  a  town  and  out  again,  leaving  in  the  minds  of  the  men  vis- 
ited only  a  confused  idea  as  to  the  identity  of  the  visitors.  It 
is  necessary  that  the  schedule  be  lived  up  to,  and  that  the  night 
stop  be  reached  not  later  than  five  or  five-thirty.  The  best  prac- 
tice seems  to  be  to  delegate  some  one  man  as  train  master,  whose 
duty  it  is  to  handle  the  train. 

It  is  important  that  advance  information  be  given  in  towns 
^  to  be  visited  through  the  commercial  organization  or  some 
official  and  to  the  local  newspapers,  advising  the  date  of  the 
visit  and  the  hour  of  arrival  and  departure,  the  information 
given  the  newspapers  being  in  nature  of  a  write-up,  which 
naturally  lends  itself  to  local  treatment. 

It  is  also  good  practice  for  the  member  making  the  trip  to 
write  his  trade  of  the  intended  call. 

The  number  of  men  carried  on  such  trips  seems  to  run 
from  seventy-five  to  one  hundred  and  fifty,  and  too  much  em 
phasis  cannot  be  laid  on  the  necessity  of  a  house  being  repre- 
sented by  the  principal  or  an  official  of  the  firm.  The  local 
merchant  sees  traveling  salesmen  frequently  but  feels  honored 
by  a  visit  from  "the  big  boss." 


354  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

There  is  some  question  as  to  the  advisability  of  inviting  re- 
tailers to  join  the  party,  and  some  cities  do  not  permit  this 
practice.  In  case  the  retailer  is  carried,  it  would  seem  wise 
that  he  give  out  no  advertising  matter  or  do  anything  to  cause 
conflict  with  the  small  town  retailer,  who  is  naturally  jealous 
otf  his  trade  territory  and  regards  the  city  retailer,  with  his  big 
advertising,  as  his  strongest  competitor. 

Equipment  carried  is,  of  course,  dependent  on  the  number 
of  men  making  the  trip,  as  in  almost  every  case  the  excursion- 
ists live  on  the  train.  The  average  equipment  consists  of  two 
baggage  cars,  one  being  used  as  a  lunch  and  soft  drink  estab- 
lishment, two  diners,  three  or  four  Pullmans,  one  or  tAvo  tour- 
ist sleepers,  and  a  combination  library,  buffet,  or  observation 
car.  The  cost,  including  transportation,  meals  and  tips,  aver- 
ages approximately  f  100  for  each  member  for  a  five  or  six-day 
trip. 

The  men  making  the  trip  may  be  divided  into  two  classes : 
Those  who  retire  early  with  the  desire  for  sleep,  and  the  owl 
squad  who  never  sleep.  The  secretary  who  knows  his  men  can 
easily  arrange  matters  so  that  these  men  occupy  different  cars, 
much  to  the  satisfaction  of  those  who  wish  rest. 

Almost  invariably  a  good  band  is  carried  and  appreciated 
in  the  small  towns  where  they  seldom  have  the  opportunity  of 
hearing  the  better  band  music. 

Short  talks  are  usually  made  in  the  towns  where  the  time 
will  warrant,  with  more  elaborate  programs  in  the  evenings, 
the  evening  program  in  most  cases  consisting  of  an  informal 
reception  or  smoker.  One  city  adopted  a  pleasing  form  of  eve- 
ning entertainment  by  giving  a  band  concert  in  conjunction 
with  motion  pictures  thrown  on  a  screen  stretched  against  a 
building.  Care  should  be  taken,  however,  in  the  selection  of 
speakers,  each  speaker  understanding  what  subject  or  subjects 
he  is  expected  to  cover  and  the  time  that  he  is  to  talk,  otherwise 
there  is  the  danger  of  a  program  becoming  long  drawn  out  and 
tiresome. 

In  speaking  in  the  open  air  it  is  much  easier  for  the  speak- 
ers if  the  crowd  be  so  grouped  as  to  allow  the  speaker  to  face 
the  wall  of  a  building  unobstructed  by  awnings.  Trying  to 
speak  from  a  corner  with  a  crowd  all  about  is  an  almost  im- 
possible situation  for  a  speaker;  it  breaks  his  voice  and  few 
can  hear,  resulting  in  inattention  and  disorder. 


TRADE  EXTENSION  TRIPS— METHODS  AND  RESULTS.  155 

Some  favor  the  carnival  spirit  and  seem  to  believe  that  this 
breaks  down  formality  and  is  appreciated  in  the  small  town.  I 
am  very  much  in  favor  of  the  dignified  educational  trip  and 
think  it  has  a  much  better  and  lasting  effect. 

I  do  not  mean  to  imply  that  I  am  opposed  to  fun,  but  any- 
thing of  this  nature  should  be  incidental  and  not  the  major 
part  of  the  program. 

In  almost  every  case  the  trade  trippers  are  supplied  with 
uniform  hats,  caps  or  dusters,  buttons  or  ribbons  showing  tht, 
name  of  the  man  and  the  firm  represented,  and  march  to  the 
center  of  the  town  visited,  led  by  the  band. 

Souvenirs  are  carried  on  all  such  occasions,  but  usually 
by  the  individual  firms,  although  some  organizations  give  out 
well-printed  advertising  matter  of  their  city,  order  books  or 
other  matter. 

In  working  up  an  itinerary  it  is  well  to  include  even  the 
"tank  towns,-'  although  the  visit  be  short,  for  often  these  towns 
take  themselves  seriously  and  resent  any  apparent  slight. 

The  Conduct  of  Automobile  Trips 

The  advent  of  the  automobile  has  served  to  greatly  increase 
the  retail  territory  of  the  larger  cities  and  towns,  in  many  cases 
shoppers  driving  twenty-five,  fifty  or  even  one  hundred  miles 
to  trade,  the  territory,  of  course,  being  affected  materially  by 
the  class  of  roads  leading  to  the  city  and  the  location  of  com- 
peting centers.  In  this  connection  too  much  stress  cannot  be 
laid  upon  the  necessity  of  good  roads. 

The  automobile  trip  is  popular  in  many  towns  and  cities, 
and  is  particularly  well  adapted  to  trips  where  the  number 
participating  does  not  warrant  the  running  of  a  special  train 
and  for  comparatively  short  trips  into  immediate  trade  terri- 
toTj.  It  permits  of  much  greater  flexibility  and  does  not  call 
for  the  outlay  required  by  the  more  pretentious  train  trips. 

As  a  rule  it  is  more  local  in  character  and  in  its  make-up 
generally  includes  men  representing  both  wholesale  and  retail 
establishments.  Frequently  such  excursions  are  almost  wholly 
community  boosting  trips — get-together,  get-acquainted  propo- 
sitions, and  are,  no  doubt,  of  value  both  from  the  standpoint 
of  a  knowledge  of  the  immediate  surrounding  country,  crop 
conditions  and  trade. 

The  better  organized  trips  have  a  definite  schedule  and 


156  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

program  such  as  the  more  ambitious  train  trips,  the  benefits 
in  territory  covered  being  comparable  to  the  extended  excur- 
sions. 

A  danger  to  be  guarded  against  in  the  automobile  trip  is 
that  of  its  degenerating  into  a  road  race  and  consequent  for- 
getfulness  of  the  real  object  of  the  trip.  When  this  occurs  it  is 
likely  to  do  more  harm  than  good. 

Benefits  to  be  Derived 

Benefits  derived  from  trade  extension  trips  may  be  classi- 
fied into  four  general  heads : 

To  the  individual  making  the  trip. 

To  the  merchant  visited. 

To  the  section  visited. 

To  the  market. 

The  individual  benefits  are  almost  as  varied  and  as  nu- 
merous as  the  men  making  up  the  party.  The  credit  informa- 
tion obtained  by  seeing  a  stock  of  goods  and  the  merchant's 
way  of  looking  after  business  in  many  cases  is  worth  more  than 
the  cost  of  the  entire  trip.  He  sees  the  manner  in  which  goods 
are  kept — neatly  displayed  or  merely  thrown  on  the  shelves. 
In  fact,  dozens  of  little  things  which  indicate  the  stability  of 
the  business  and  which  do  not  find  their  way  into  commercial 
reports. 

Then  there  is  the  opportunity  of  straightening  out  the  little 
difficulties  and  misunderstandings  that  sometimes  arise  and 
that  cannot  be  adjusted  through  the  salesmen,  but  are  easily 
solved  when  the  principals  get  together. 

The  jobber  or  manufacturer  can  determine  if  he  is  getting 
the  amount  of  business  he  should  get  on  the  territory,  and  has 
the  chance  to  judge  if  he  has  the  real  live  account  in  the  town 
or  is  tied  up  with  the  less  desirable  merchant.  He  is  enabled 
to  study  at  first  hand  the  needs  of  his  trade  and  to  determine 
whether  he  is  giving  the  sort  of  service  his  customers  have  a 
right  to  expect. 

Incidentally  it  gives  him  a  check  on  his  sales  force  in  the 
territory.  One  jobber  told  me  of  a  case  where  one  of  his  travel- 
ing salesmen  had  charged  regularly  in  his  expense  account  for 
a  drive  to  reach  a  certain  town.  What  was  his  surprise  in 
chatting  with  the  customer  to  find  that  his  representative  had 


TRADE  EXTENSION  TRIPS— METHODS  AND  RESULTS.  157 

not  visited  the  merchant  in  two  years,  but  had  called  him  on 
the  telephone. 

Freight  deliveries  are  worthy  of  study  on  such  trips,  and 
often  information  gained  has  resulted  in  the  working  out  of 
more  advantageous  schedules  with  resultant  increased  trade. 

The  educational  value  is  a  very  real  one.  No  wide  awake 
business  man  can  make  such  a  trip  without  gaining  a  much 
more  comprehensive  idea  of  the  country  which  he  serves,  its 
resources,  and  its  possibilities  for  development. 

The  acquaintance  betw^een  jobber  and  merchant  makes  for 
a  better  understanding,  a  better  spirit,  and  closer  cooperation ; 
for  business  in  the  main  is  done  on  quality,  price,  preference 
and  confidence;  but  these  being  equal,  good  will  is  often  the 
deciding  factor. 

There  is  undoubtedly  a  selling  value  to  the  individual  busi- 
ness man  Avho  does  business  in  a  town  that  is  known  to  be  very 
much  alive  and  hustling  for  business,  as  well  as  giving  a  good 
impression  of  progressiveness. 

The  follow-up,  and  here  is  a  problem  many  a  business  man 
has  pondered  over!  The  trade  trip  follow-up  is  worthy  of 
thought.  It  is  not  new^  for  the  business  man  to  sit  down  after 
a  trip  and  Avrite  the  men  he  has  seen.  It  is  hard  work  when 
the  desk  is  piled  high  after  a  week's  absence.  But  it  pays.  But 
pays  only  when  the  follow-up  is  made  with  the  right  sort  of 
letter.  The  ordinary  stereotyped  sort  won't  do.  As  well  give 
the  girl  stenographer  a  copy  of  the  catalog  for  reading  at  the 
seashore.  It  should  be  a  good,  red-blooded  letter,  with  a  punch, 
a  personality,  a  message  from  the  man  w^ho  takes  his  pen  in 
hand  and  affixes  his  signature  at  the  end. 

Then  again,  a  piece  of  printed  matter  is  sent  out  by  the 
organization  expressing  appreciation — an  invitation  to  visit 
the  city  and  become  better  acquainted.  More  likely  than  not 
this  carries  a  list  of  the  men  who  made  the  trip.  Properly  pre- 
pared, such  matter  should  be  worth  while. 

The  suggestion  has  been  made  that  a  trade  trip  might  prove 
of  value  to  the  merchant  if  a  retail  efficiency  expert  w  ere  car- 
ried to  aid  the  small  town  merchant.  It  is  my  judgment  that 
such  a  man  could  do  little  in  a  town  in  the  time  at  his  command 
and  that  this  matter  can  be  much  better  handled  through  a 
merchants'  week  or  short  cpurse  wdth  w  hich  many  of  you  are 
familiar. 


158  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Sometimes  we  unconsciously  overlook  the  human  equation ; 
we  forget  the  human  element  in  business.  We  forget  the  value 
of  the  personal  touch.  1  believe  you  will  all  agree,  however,  that 
you  have  a  different  feeling  in  w^riting  a  man  you  know  and  can 
visualize  as  you  write  and  put  more  of  yourself  into  the  com- 
munication. The  same  is  true  in  the  ordinary  commercial 
transaction.  The  merchant  feels  the  human  element  in  writ- 
ing the  jobber  or  manufacturer  whom  he  has  seen ;  he  is  a  flesh- 
and-blood  reality  to  him  rather  than  a  vague  abstraction,  and 
the  distributor  or  manufacturer  writes  with  a  different  spirit 
when  he  sees  in  his  mind's  eye  the  customer  he  is  literally  talk- 
ing to  and  knows  his  surroundings. 

Some  Results  from  Trade  Tours 

There  is  a  very  real  value  to  the  merchant  visited.  It  is 
his  opportunity  to  show^  the  jobber  or  manufacturer  that  he  is 
worthy  and  entitled  to  a  line  of  credit.  He  has  the  advantage 
of  being  "at  home ;''  he  can  point  out  his  favorable  location,  his 
well  displayed  stock  of  goods,  and  his  efficient  store  service. 
He  can  call  attention  to  the  prosperity  of  his  section  of  the 
country,  the  big  barns,  the  fine  herds  of  cattle  and  the  crop 
possibilities. 

The  worth  of  such  a  call  to  the  town  visited  may  be  a  very 
genuine  one.  It  is  a  big  possibility  for  advertising  and  the 
wide  awake  town  takes  advantage  of  it.  The  men  making  the 
trip  are  usually  trained  observers.  They  are  quick  to  see  busi- 
ness opportunities,  the  resources  of  a  town  and  where  there 
may  be  an  opening.  Many  times  this  results  to  the  advantage 
of  that  section.  The  big  business  man  knows  someone  who  is 
seeking  a  location  and  sends  him  there.  It  helps  in  municipal 
improvements — the  town  wants  to  sell  bonds  and  there  are  men 
in  the  party  who  can  handle  the  proposition.  Better  mail  serv- 
ice, better  freight  deliveries,  a  re-arrangement  of  the  passenger 
schedule,  a  hundred  and  one  things  the  small  town  Avants  come 
to  the  attention  of  men  w^ho  can  and  are  willing  to  help. 

While  it  may  be  difficult  in  some  cases  to  trace  direct 
benefits,  such  trips  are  unquestionably  of  great  value  to  a  mar- 
ket, and  there  is  no  doubt  that  many  cities  have  developed  a 
strength  that  would  have  been  impossible  except  through  such 
methods. 

Cities,    like    individuals,    are    frequently    misunderstood; 


TRADE  EXTENSION  TRIPS— METHODS  AND  RESULTS.  159 

especially  is  this  true  of  the  big  city  in  a  given  territory.  The 
trade  trip  is  often  the  medium  for  removing  misconception, 
eliminating  suspicion,  and  clearing  the  way  for  mutual  under- 
standing. 

A  publicity  value  also  attaches  to  such  an  undertaking, 
as  it  is  usually  given  much  favorable  comment  by  the  press 
throughout  the  entire  trade  territory. 

The  home  influence  is  invaluable,  for  one  of  the  greatest 
benefits  of  such  a  trip,  if  not  the  greatest,  is  the  opportunity 
given  a  man  of  getting  acquainted  with  the  business  men  of  his 
home  city. 

Rubbing  elbows,  thrown  together  for  a  week  with  men  they 
have  merely  had  a  speaking  acquaintance  with  in  the  past,  has 
a  beneficial  effect.  Men  in  knowing  each  other  lose  suspicion 
and  learn  cooperation.  They  cease  to  be  violenth^  competitive 
and  begin  to  sense  the  value  of  working  together.  They  do  not 
fight  among  themselves  but  unite  to  meet  the  needs  of  their 
trade  territory  through  better  service.  They  go  back  to  their 
desks  ready  to  help  each  other,  with  a  broader  vision,  a  kindlier 
feeling,  a  better  spirit,  and  with  more  charity  toward  both 
customer  and  competitor. 


CHAPTER  X. 
Charity  Endorsements 

Charity  Endorsements  and  the  Prevention  of  Fraudulent  Solicitation 
By  HOWARD  STRONG 

A  generation  ago  the  average  commercial  organization 
would  have  considered  ridiculous  the  proposal  that  it  assume 
the  endorsement  and  supervision  of  the  charitable  organizations 
and  activities  of  its  community. 

Each  one  of  you  accepts  the  new  conception  of  the  com- 
mercial organization  as  a  body  which  includes  every  civic,  social 
and  commercial  activity  making  for  the  common  welfare.  Such 
an  organization  recognizes  the  propriety  of  the  demand  of  busi- 
ness men  for  protection  against  frauds  of  various  kinds,  and 
assurance  of  economy  and  efficiency  in  the  charitable  and  phil- 
anthropic agencies  which  call  upon  them  for  support. 

The  assumption  of  this  supervisory  function  by  a  commu- 
nity organization  is  based  upon  the  fundamental  principle  that 
the  charity  which  receives  its  support  from  the  public,  is  in  a 
sense,  a  public  institution,  and  that  the  public  has  a  right  and 
a  responsibility,  therefore,  to  know  its  methods  and  to  demand 
its  conformity  with  an  accepted  standard.  Asa  result,  the  com- 
mercial body  or  some  other  representative  agency,  in  most  of 
our  large  communities,  has  assumed  the  responsibility  of  repre- 
senting the  contributors,  in  supervising  the  collection  and  ex- 
penditure of  funds  for  public  charity  and  relief. 

In  many  instances  this  has  been  only  the  first  step  in  the 
process  and  there  have  been  taken  on  additional  functions  which 
I  shall  endeavor  to  discuss. 

It  is  unnecessary  to  convince  you  of  the  i)ropriety  of  cre- 
ating an  endorsement  committee,  or  in  detail  to  discuss  the 
advantages  resulting  from  its  activities.  A  questionaire  mak- 
ing detailed  inquirj^  as  to  the  existence  of  such  a  body  was  sent 
to  sixty-six  cities.  Replies  were  received  from  fifty-seven,  and 
out  of  these  forty-five  have  already  undertaken  a  plan  of  en- 
dorsement, and  five  are  planning  to  do  so,  leaving  only  seven  of 

160 


CHARITY  ENDORSEMENTS  AND  FRAUDULENT  SOLICITATION.  IGl 

the  number  replying,  who  are  not  definitely  undertaking  it.  I 
assume  that  you  are  all  in  sympathy  with  the  general  purpose  of 
the  plan,  and  with  its  accomplishments.  I  take  it  that  you  will 
prefer  a  discussion  of  technique,  methods  which  have  been  found 
successful,  and  the  results  which  have  been  attained  through 
these  various  methods. 

Answering  Essential  Questions 

Let  me  approach  the  question  from  live  points  of  view. 

First — By  what  organization  should  charity  supervision 
be  undertaken? 

Second — What  activities  should,  be  included  in  this  super- 
vision? 

Third — What  should  be  the  specific  relationship  between 
the  supervising  body  and  the  charities  under  its  jurisdiction? 

Fourth — By  what  method  should  the  conclusions  of  the 
supervising  body  be  brought  to  the  attention  of  the  contributing 
public  ? 

Fifth — What  should  be  the  relationship  between  the  en- 
dorsing body  and  similar  bodies  in  other  communities? 

First: — What  organization  should  assume  the  responsibil- 
ity of  charity  supervision?  The  early  tendency  was  toward  the 
performance  of  this  function  hv  the  central  charity  organiza- 
tion of  the  city.  It  has  been  argued  that  such  a  society  has  a 
better  understanding  of  the  work  of  various  charitable  organi- 
zations than  any  other  group  can  have ;  that  it  is  in  closer  touch 
with  their  problems,  and  that  it  can  in  a  greater  degree  com- 
mand the  services  and  judgment  of  those  familiar  with  char- 
itable activities.  It  has  been  almost  universally  found,  how- 
ever, that  charitable  organizations  themselves  resent  the  as- 
sumption of  a  supervisory  attitude  on  the  part  of  one  of  their 
own  number.  The  right  of  this  organization  to  set  itself  up 
as  a  mentor  over  other  similar  organizations  is  questioned,  and 
the  judgment  of  those  representing  this  body  is  in  danger  of 
being  affected  by  their  peculiar  and  special  interest  in  certain 
phases  of  the  charity  problem. 

Further,  because  of  an  entirely  unwarranted,  though  preva- 
lent suspicion  on  the  part  of  business  men,  that  people  active- 
ly identified  w^ith  charity  organizations  are  theoretical  rather 
than  practical,  the  decisions  of  the  body  representing  the  charity 
organization  are  not  infrequently  discounted.    At  present,  only 


162  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

four  of  those  replying  to  the  questionaire  conduct  bureaus  in 
this  manner,  clearly  indicating  a  tendency  away  from  this  plan. 

A  modification  of  this  method  is  found  in  the  creation  of 
a  joint  committee,  representing  both  charity  organization,  soci- 
ety and  commercial  body.  Tliis  combination  gives  added  weight, 
in  the  minds  of  the  contributing  public,  to  decisions  of  this 
committee,  but  fails  to  eliminate  the  suspicion  and  distrust 
engendered  on  the  part  of  the  organizations  coming  under 
supervision.  Only  four  cities  conduct  the  bureau  according  to 
this  plan. 

Some  years  ago  the  endorsement  body,  as  a  money-making 
proposition,  was  popular.  This  was  conducted  purely  for  per- 
sonal gain  and  was  subject  to  such  abuse  that  it  has  practically 
disappeared. 

Task  for  Commercial  Bodies 

The  plan  under  which  the  commercial  organization  itself 
assumes  the  entire  responsibility  of  supervision  is  gaining  in 
favor.  The  committee  representing  the  commercial  body  is 
usually  made  up  of  men  of  high  business  standing  who  are 
thoroughly  conversant,  and  usually  connected,  with  the  activi- 
ties of  various  charitable  organizations.  Their  experience  in 
administering  successfully  the  affairs  of  these  philanthropic 
activities  insures  the  soundness  of  their  judgment  in  such 
matters ;  their  breadth  and  recognized  standing  in  the  commu- 
nity commands  the  respect  alike  of  charity  organizations  and 
the  contributing  public;  while  their  right  to  refuse  approval 
of  unworthy  methods  and  to  demand  efficiency,  because  they 
represent  the  contributors  of  the  community,  is  freely  recog- 
nized by  almost  every  agency  subject  to  supervision.  I  think 
this  will  soon  be  the  universally  accepted  plan. 

Second : — What  activities  shall  be  included  under  the  direct 
supervision  of  the  commercial  organization?  Some  supervis- 
ing agencies  confine  themselves  to  a  consideration  merely,  of 
solicitations  for  local  permanent  charitable  organizations,  but 
no  such  agency,  if  it  is  alive  to  its  responsibility,  can  stop  with 
a  consideration  of  these  demands  upon  the  community.  There 
are  myriads  of  soliciting  schemes  which  are  presented  for  the 
consideration  and  support  of  the  giving  public — religious  and 
labor  organizations  doing  some  charitable  work,  temporary 
appeals  for  specific  purposes,  appeals  for  individual  relief,  for 
philanthropic  purposes  in  other  cities,  and  for  national  move- 


CHARITY  ENDORSEMENTS  AND  FRAUDULENT  SOLICITATION.  163 

ments  of  various  sorts,  requests  for  advertising  for  semi-philan- 
thropic purposes  as  well  as  straight  commercial  advertising 
which  promise  returns  for  value  received,  and,  of  course,  the 
ever  present  opportunity  for  every  conceivable  character  of 
business  investment.  I  believe  that  the  commercial  organiza- 
tion can  well  assume  a  direct  supervision  over  most  of  these 
types  of  solicitation.  I  see  no  reason  why  every  one  should  not 
be  included  if  the  organization  has  the  means  to  undertake  the 
responsibility  and  the  influence  to  make  its  decisions  effective. 
The  average  business  man  has  little  opportunity  to  study  the 
genuineness  of  the  many  appeals  which  come  to  him  each  day. 
He  is  anxious  to  support  those  things  which  make  for  the  up- 
building of  his  city,  or  which  mean  a  legitimate  profit  for  him- 
self. But  he  does  not  want  to  be  bunkoed.  His  organization, 
which  exists  for  the  good  of  his  community,  can  well  undertake 
the  function  of  protecting  him  against  useless  or  worse  than 
useless  appeals  and  recommending  to  him  those  which  it  believes 
are  for  the  common  welfare. 

If  the  commercial  organization  is  so  disposed,  it  may  even 
employ  experts  who  are  competent  to  investigate  the  commer- 
cial feasibility  of  various  advertising  plans  which  are  presented 
and  the  soundness  of  proposed  business  investments.  One  state- 
wide commercial  organization  has  definitely  undertaken  this  re- 
sponsibility. It  has  organized  an  investors'  league  as  one  of 
its  departments,  which  will  endeavor  to  ferret  out  dishonest 
promoters  and  wildcat  investments,  and  to  inform  its  members 
as  to  their  true  nature.  It  will  endeavor  also  to  promote  and 
educate  a  public  confidence  in  legitimate  investment.  The  com- 
mercial organization  which  can  perform  all  of  these  functions 
successfully  will  unquestionably  render  a  great  service  to  its 
members  and  to  the  community. 

A  Constructive  Supervision 

Third: — Perhaps  the  most  important  phase  of  the  whole 
problem  is  the  degree  of  supervision  which  the  endorsing  body 
shall  exercise. 

Some  supervisory  bodies  act  merely  as  rating  agencies. 
The  simplest  and  least  effective,  but  apparently  the  commonest 
method,  unfortunately,  is^analogous  to  the  function  performed 
by  Dun's  or  Bradstreet's  agency.  The  endorsing  committee 
investigates  the  various  applications  for  approval  which  come 


164  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIEiS. 

before  it.  Those  Avhich  are  worthy  and  legitimate  are  given 
some  form  of  endorsement  or  favorable  report.  The  unworthy 
applications  are  refused  and  the  matter  ends  there.  The  or- 
ganization Avhich  performs  no  other  function  than  this,  however, 
is  making  little  contribution  to  the  constructive  philanthropy 
of  its  town.  It  usually  does  not  have  the  cooperation  of  the 
charitable  organizations  of  the  city,  and  more  often  than  not 
finds  itself  without  influence  and  its  decisions  little  regarded. 

The  endorsing  body  which  would  be  really  effective  must 
assume  a  definitely  constructive  and  supervisory  capacity. 
Such  an  organization  gains  the  confidence  and  cooperation  of 
efficient  charitable  organizations  by  cooperating  with  them  in 
the  standardization  of  their  methods,  in  suggesting  improve- 
ments and  in  assisting  them  to  bring  their  needs  before  the 
public  in  the  most  favorable  manner,  and  further  by  taking 
action  against  unworthy  organizations  which  are  diverting 
funds  from  their  support.  The  endorsing  body  confers  with 
organizations  which  are  endeavoring  to  fill  a  real  need,  but 
which  are  ineffective  or  extravagant,  and  it  becomes  eventually 
the  controlling  influence  in  making  these  organizations  serve 
fully  the  purpose  for  which  they  exist.  This  committee  sys- 
tematically studies  the  whole  charitable  field,  it  eliminates 
duplication  and  useless  effort,  it  secures  cooperation  among 
organizations  performing  similar  functions,  it  assists  in  creat- 
ing new"  agencies  to  meet  needs  not  already  cared  for.  If  its 
work  is  done  wisely  and  without  prejudice  it  becomes  the  princi- 
pal factor  in  the  elimination  of  destructive  charity  and  in  the 
development  of  a  truly  scientific  and  independence-producing 
philanthropy. 

It  goes  further  than  this — it  concerns  itself  more  or  less 
directly  with  every  unsocial  condition  in  the  community.  It 
has  a  part  in  the  removal  of  these  conditions,  thus  helping  to 
eliminate  the  necessity  for  the  curative  charitable  agencies 
which  must  now  be  supported  by  the  public.  Housing,  public 
health,  recreation  and  a  score  of  other  activities  become  its 
vital  interests,  either  through  its  own  activities  or  through  its 
cooperation  with  bodies  which  are  dealing  with  these  problems. 

The  supervising  agency  thus  becomes  the  sponsor  for 
all  of  the  constructive  philanthropic  and  charitable  activity 
of  the  community.  In  some  cities  where  the  program  has  been 
worked  out  most  successfully,  the  committee  holds  itself,  and 


CHARITY  ENrX)RSEMENTS  AND  FRAUDULENT  SCLICITATION.  165 

expects  the>  community  to  hold  it,  directly  responsible  for  the 
efficiency  and  economy  of  the  various  social  agencies  coming 
under  its  supervision.  No  such  committee  can  assume  this 
degree  of  responsibility  without  the  employment  of  a  staff  of 
trained  charity  experts,  for  intelligent  supervision  of  this  char- 
acter requires  intimate  understanding  of  the  actual  problems 
and  management  of  charitable  organizations.  The  commercial 
body  which  assumes  this  responsibility  and  discharges  it  con- 
scientiously becomes  a  mighty  force  in  the  civic  and  social  up- 
building of  its  town. 

Methods  of  Endorsement 

Fourth : — The  method  by  which  the  conclusions  of  the  en- 
dorsing body  are  brought  to  the  attention  of  the  public  is  im- 
portant. In  some  instances,  the  endorsing  body  gives  no  formal 
certification  for  any  kind  of  solicitation.  It  informs  itself  as 
to  the  worthiness  of  various  appeals,  and  any  contributor  who 
wishes  to  learn  Avith  reference  to  an  appeal  must  call  upon  or 
write  to  the  endorsing  body  for  information. 

In  other  instances  lists  of  approved  institutions  are  pub- 
lished by  the  endorsing  body  from  time  to  time,  and  distributed 
to  its  members,  and,  in  some  cases,  to  the  general  public. 

Sometimes  a  formal  letter  or  certificate  of  approval,  usual- 
ly covering  a  limited  period,  is  issued  to  every  sort  of  an  agency 
making  a  legitimate  appeal,  while  in  other  cases  such  endorse- 
ment is  issued  only  to  local  worthy  permanent  charitable  or- 
ganizations, and  a  verbal  or  written  report  is  made  upon  re- 
quest for  all  other  appeals.  The  plan  by  which  a  report  upon 
request  is  given  without  formal  endorsement  is,  I  think  experi- 
ence has  shown,  comparatively  ineffective.  This  plan  provide^^i 
no  direct  means  for  bringing  to  the  constant  attention  of  the 
contributor  the  fact  that  there  is  an  organization  which  is  ready 
to  serve  him.  The  availability  of  this  service,  as  a  matter  of 
fact,  occurs  to  a  very  small  proportion  of  the  contributors  who 
are  called  upon,  and  as  a  result,  the  approval  of  the  endorsing 
body  is  not  at  all  an  essential  element  in  securing  funds.  The 
endorsing  body  consequently  has  little  influence  in  endorsing 
its  requirements  upon  the  institutions  which  it  seeks  to  influ- 
ence. I  do  not  think  a  single  endorsing  body  which  follows 
this  plan,  has  attained  an  influence  which  makes  its  endorse- 
ment essential  to  the  support  and  success  of  every  charitable 


360  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

organization  in  the  community,  and  which  is,  therefore,  in  a 
position  to  enforce  high  standards  of  efficiency. 

I  am  very  strongly  of  the  opinion  that  the  most  effective 
method,  from  the  standpoint  of  efficiency  in  the  charitable  or- 
ganization, education  of  the  contributor,  and  protection  to  the 
community,  lies  in  the  use  of  some  form  of  an  endorsement 
card  or  certificate,  supplemented  perhaps  by  the  occasional  pub- 
lication of  a  "v/hite  list,'-  at  least  for  permanent  local  bodies. 
Every  solicitor  who  carries  a  card  of  this  kind  is  certain  to 
present  it  as  an  additional  argument  for  a  contribution.  The 
contributor  in  a  short  time  comes  to  realize  that  there  is  an 
organization  which  is  constantly  serving  him  and  when  the 
card  is  not  presented  he  insists  upon  the  endorsement  of  his 
organization  before  he  makes  a  contribution.  Thus  every  char- 
itable organization  comes  to  recognize  the  tremendous  influence 
and  value  of  having  the  official  endorsement,  and  makes  every 
effort  to  comply  with  the  standards  insisted  upon  by  the  en- 
dorsing body.  I  know  of  several  communities  in  which  the  ap- 
proval of  the  endorsing  body  is  practically  essential  to  the  con- 
tinuance and  success  of  the  charitable  organizations. 

Endorsement  Cards  Issued 

On  the  other  hand,  it  is  frequently  argued  that  the  issuance 
of  a  card  of  endorsement  results  in  the  absolute  reliance  of  the 
contributor  upon  the  judgment  of  the  endorsing  body  and  that 
support  of  the  philanthropic  activities  of  the  community  be- 
comes mechanical  instead  of  resulting  from  an  intimate  knowl- 
edge of  and  interest  in  the  work  of  these  organizations.  As  a 
matter  of  fact,  I  think  experience  has  clearly  proven  that  the 
use  of  the  endorsement  card  stimulates  personal  investigation 
and  inquiry  on  the  part  of  the  contributor,  and  that  in  those 
communities  where  this  plan  is  followed,  the  giving  public  has 
attained  a  more  intelligent  understanding  of  and  greater 
sympathy  with  the  work  which  it  is  supporting  than  has  been 
attained  in  communities  which  employ  other  methods.  The 
endorsement  bodies  which  have  been  the  most  potent  factors 
in  the  education  of  their  communities  to  a  responsibility  for 
the  charitable  work  of  those  communities  are  in  general  the 
ones  which  have  followed  this  method. 

A  modification  of  the  endorsement  card  has  been  tried  in 
one  community  with  some  success.    Solicitors  are  given  a  large 


CHARITY  ENDORSEMENTS  AND  FRAUDULENT  SOLICITATION.  167 

certificate  sheet.  The  endorsement  is  at  the  top,  together  with 
the  amount  of  money  which  the  organization  may  collect  during 
the  current  year,  and  space  is  left  for  the  names  of.  subscribers, 
with  the  amount  which  they  give.  Contributors  are  urged  to 
give  only  when  a  sheet  of  this  kind  is  presented,  and  to  record 
their  names  and  contributions  on  this  sheet.  This  makes  it 
possible  to  determine  at  all  times  the  amount  which  is  being 
raised  and  insures  against  the  solicitor's  appropriating  a  part 
of  the  money  which  he  receives. 

In  some  communities  the  card  of  endorsement  is  given  in- 
discriminatety  to  every  sort  of  solicitation  which  is  considered 
legitimate.  This  is  dangerous,  for  it  is  an  almost  impossible 
task  for  any  group  of  men  to  become  absolutely  certain  as  to 
the  worthiness  of  appeals  for  some  forms  of  advertising,  for 
solicitation  for  individual  relief,  and  particularly  for  activities 
outside  their  own  communities  and  in  other  cities.  The  re- 
sponsibility which  is  implied  by  the  issuance  of  a  card  should 
not  be  assumed  without  this  certainty. 

Fifth : — What  relation  should  exist  between  the  endorsing 
body  and  similar  bodies  in  other  communities?  The  endorse- 
ment committee  plan  has  become  a  national  movement.  Prob- 
ably upwards  of  seventy-five  or  one  hundred  cities  are  now  more 
or  less  effectively  performing  this  function.  Methods  are  be- 
coming standardized  as  we  gradually  work  out  those  practices, 
which  are  the  most  successful.  Furthermore,  there  are  a  great 
many  appeals  which  are  nation-wide  in  character.  Certain 
national  bodies  performing  national  functions  send  their  so- 
licitors throughout  the  country.  There  are  local  bodies,  such 
for  instance  as  educational  institutions,  soliciting  in  various 
cities  and  states.  Again,  there  is  that  vast  host  of  itinerant 
solicitors,  with  various  questionable  schemes,  happily  decreas- 
ing in  number,  which  appear  in  various  cities. 


CHAPTER  XI. 
Commercial  Arbitration 

By  T.  C.  HUFF 

In  1768,  when  the  New  York  Chamber  of  Commerce  was 
formed,  a  provision  was  incorporated  in  its  Charter  that  it 
could  arbitrate  business  disputes.  This  organization  has  made 
four  attempts  to  form  a  mechanism  for  conducting  arbitration. 
The  first  three  were  failures.  The  first  failed  because  there 
was  no  method  of  enforcing  the  award;  the  other  two,  because 
they  attempted  too  much,  for  the  promoters  had  in  mind  a 
court  of  commerce,  exclusively  for  merchants,  fashioned  after 
the  Old  World  Handelsgerichte  and  the  Tribunaux  de  Com 
merce.  Differences  in  laws,  customs  and  viewpoints  made  such 
a  scheme  impracticable  in  our  country.  The  fourth  and  last 
plan,  later  to  be  described,  is  a  more  modest  attempt  and  seems 
in  order  and  quite  within  the  realm  of  practicability. 

In  1801  the  Philadelphia  Chamber  of  Commerce  composed 
of  merchants  of  Philadelphia  provided  in  its  by-laws  for  an 
arbitration  committee  to  settle  commercial  differences  arising 
among  its  members.  We  find  many  early  attempts  to  form 
strictly  trading  bodies.  In  nearly  every  case,  arbitration  of 
disputes  among  members,  was  an  essential  part  of  the  work. 
In  1836  when  the  Boston  Chamber  of  Commerce  was  founded, 
it  had  only  two  committees,  the  committee  of  inquiry  and  the 
committee  of  reference.  It  is  not  stated  what  their  functions 
were,  but  the  latter  was  probably  a  board  of  commercial  arbi- 
tration. The  arbitration  committee  and  the  committee  on  ap- 
peals held  a  very  important  place  in  the  Boston  Board  of  Trade 
in  1854,  when  it  was  founded. 

In  preparation  for  this  study  of  the  present  status  of  this 
form  of  chamber  of  commerce  activities,  a  questionaire  was 
sent  out  to  39  organizations  from  which  28  replies  were  re- 
ceived which  told  of  the  activities  and  how  they  were  conduct- 
ed. Most  of  the  material 'in  this  study  w^as  secured  from  sixteen 
of  the  organizations  reporting  this  character  of  work. 

168 


COMMERCIAL  ARBITRATION.  .    169 

Early  in  the  investigation  it  became  evident  that  thev<i 
must  be  a  division  of  this  study  into  two  parts,  one  considering 
commercial  arbitration  in  bodies  which  conduct  or  supervise 
trading,  and  the  other  considering  commercial  arbitration  in 
such  bodies  as  do  not  engage  in  this  type  of  work.  A  trading 
body  is  usually  an  organization  of  business  men  in  one  particu- 
lar industry  or  trade.  A  commercial  association  of  the  non- 
trading  type,  on  the  other  hand,  is  a  voluntary  organization  of 
business  men  engaged  in  various  lines  of  business.  In  a  trading 
body  an  arbitration  committee  is  an  essential  part  of  the  trad- 
ing equipment  of  the  organization.  Its  function  is  to  settle 
business  disputes  which  frequently  arise  and  which  usually  are 
of  so  technical  a  character  as  to  make  difficult  any  settlement 
by  persons  not  familiar  with  the  technicalities  of  the  trade.  In 
this  study  the  main  characteristics  of  the  trading  body  arbitra- 
tion work  will  first  be  pointed  out.  After  this  there  will  follow 
a  similar  discussion  of  some  of  the  main  points  of  difference 
between  arbitration  committee  work  of  commercial  organiza- 
tions and  the  operations  of  the  trading  bodies. 

Selection  and  Control  of  Arbitrators 

It  is  characteristic  of  the  arbitration  methods  of  trading 
bodies  that  they  do  their  arbitrating  through  standing  commit- 
tees. The  chief  exception  is  the  New  Orleans  Board  of  Trade, 
Ltd.,  which  has  both  standing  and  special  arbitration  commit- 
tees. One  of  the  standing  committees  of  this  body,  for  example, 
arbitrates  maritime  matters.  iVrbitrations  are  also  provided 
for,  however,  before  special  committees,  to-  be*  appointed  by  the 
chairman  of  the  standing  committee,  having  jurisdiction  over 
the  commodity  at  issue.  For  instance,  if  there  is  any  difference 
between  two  members  dealing  in  hay,  a  special  arbitration  can 
be  had  before  three  arbitrators,  appointed  by  the  chairman  of 
the  hay  committee. 

The  selection  of  arbitrators  presents  few  variations  in 
method.  In  all  cases  they  are  selected  from  the  membership 
of  the  organization.  Three  organizations  do  not  allow  a  mem- 
ber of  the  board  of  directors  to  serve  on  the  arbitration  com- 
mittee. The  number  who  may  act  on  the  committee  is  defi- 
nitely limited  in  all  cases.^  In  practically  all  instances  the  rules 
specifically  provide  that  if  an  arbitrator  is  even  indirectly  in- 
terested in  the  dispute  he  cannot  serve  on  the  arbitration  com- 


170  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

mittee.  In  two  organizations  the  disqualified  member  or  mem- 
bers are  replaced  by  appointment  by  the  president  and  one  by 
the  secretary.  In  ^ve  cases  the  majority  of  the  committee,  a 
quorum,  can  hear  the  case  and  decide  it.  In  one  instance,  the 
man  is  replaced  by  a  mutual  agreement  of  the  disputants. 

There  is  comparative  uniformity  also  in  delimiting  the 
scope  of  the  arbitration.  Legal  questions  are  considered  by 
only  one  body,  while  the  financial,  mercantile  and  commercial 
disputes  are  specified  in  most  cases  as  the  field  to  which  arbi- 
tration must  be  confined.  One  association  undertakes  to  settle 
all  kinds  of  disputes.  As  a  general  thing  business  disputes  in- 
volving money,  are  the  great  class  of  differences  settled.  Only 
questions  of  fact  are  decided  by  seven  bodies  and  both  fact  and 
law  by  one.  These  cases  are  decided  between  members  of  the 
organization  or,  members  and  outsiders  by  all  of  the  bodies  but 
one.  Before  taking *up  a  case,  conciliation  is  attempted  in  four 
bodies.  Seven  of  the  associations  require  that  each  of  the  dis- 
putants fill  out  a  written  form  and  file  it  with  the  secretary  of 
the  association  before  the  case  is  taken  up.  The  other  two  re- 
quire only  a  written  agreement. 

There  is  little  uniformity  as  to  the  methods  of  selecting 
arbitrators.  The  Baltimore  Chamber  of  Commerce  and  the 
Master  Builders'  Exchange  of  the  city  of  Philadelphia  have  a 
plan,  whereby  the  disputants  each  select  a  member  of  the  or- 
ganization and  these  two  choose  a  third.  Four  organizations 
permit  only  the  committee  to  act,  while  the  Indianapolis  Board 
of  Trade  and  the  Memphis  Merchants'  Exchange  permit  only  a 
committee  to  arbitrate,  but  if  the  disputants  cannot  agree  on 
the  regular  standing  committee,  they  may  choose  another  com- 
mittee to  decide  the  dispute  for  them,  this  committee  having 
the  same  delegated  powers  as  the  regular  standing  committee. 

Only  three  bodies,  the  Master  Builders'  Exchange  of  the 
City  of  Philadelphia,  the  Indianapolis  Board  of  Trade,  and 
the  Chicago  Board  of  Trade  permit  the  arbitrators  to  decline 
to  consider  a  case  for  good  and  sufficient  reasons.  In  Chicago 
this  reason  was  "want  of  jurisdiction  only."  All  the  other  or- 
ganizations reported  that,  "It  is  the  duty  of  the  committee  to 
hear  and  decide  all  cases  that  may  be  brought  before  it."  Most 
of  the  organizations  will  not  consider  unimportant  or  trivial 
matters. 


COMMERCIAL  ARBITRATION.  X71 

Methods  of  Procedure 

After  having  once  taken  up  a  case,  in  only  three  instances 
is  the  procedure  informal.  In  two  cases,  the  arbitrators  do  not 
have  discretionary  power  to  follow  or  disregard  rules  of  law, 
but  must  follow  certain  well-defined  state  statutes.  In  the  other 
cases,  the  decisions  are  based  on  equity  and  justice.  The  men 
who  give  these  decisions  are  generally  sworn  in  before  a  notary 
or  justice  of  the  court.  The  same  process  is  also  gone  through 
with  the  witnesses.  Some  official  on  the  exchange  swears  in  the 
men  on  the  New  Orleans  Board  of  Trade,  Ltd.,  while  in  the 
Chicago  Board  of  Trade,  the  chairman  of  the  committee  acts 
in  this  capacity.  For  the  purpose  of  securing  evidence,  f«>ur 
bodies  allow  the  disputants  to  subpoena  witnesses,  and  comy^el 
the  production  of  books  and  papers,  as  in  a  court  of  law.  While 
the  Master  Builders'  Exchange  of  the  city  of  Philadelphia  does 
not  give  this  privilege,  the  New  Orleans  Board  of  Trade,  Ltd., 
can  subpoena  a  witness  but  cannot  compel  the  production  of 
papers  and  books. 

The  penalty  for  failing  to  appear  before  the  committee 
varies  with  the  different  organizations.  The  various  answers 
were  as  follows : 

"At  the  discretion  of  the  committee." 

"Fine,  suspension,  or  expulsion." 

"Fine." 

"Ne\er  occurred." 

"Fine  not  exceeding  one-half  of  the  fee,  and  the  board  can  insist  on  no 
postponement." 

"Postponed,  too  many  hearings  would  result  in  ex-parte  hearing." 

"If  the  plaintiff,  the  case  fails;  if  the  defendant,  judgment  is  against 
him  by  default." 

These  various  answers  show  that  there  is  little  uniformity 
in  dealing  Avith  this  situation. 

All  of  the  proceedings  are  taken  down  by  a  stenographer 
in  five  organizations,  in  two  if  it  is  desired,  and  one  does  not  at 
all.  The  action  of  the  committee  is  not  secret  to  members  of  the 
association,  except  in  the  case  of  the  Chicago  Board  of  Trade. 
If  a  member  wishes  to  see  the  award  of  the  committee,  he  can 
do  so  upon  application  to  the  secretary.  In  reaching  these 
awards,  all  cases  are  settled  on  their  merit  and  are  not  gov- 
erned by  precedent. 


172  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

The  Decision  and  its  Force 

The  decision  of  the  committee  is  binding  in  five  cases  and 
subject  to  appeal  in  the  New  Orleans  Board  of  Trade,  Ltd., 
the  Minneapolis  Chamber  of  Commerce,  the  Chicago  Board  of 
Trade  and  the  Indianapolis  Board  of  Trade.  The  statutes  of 
the  state  in  ^>'hich  the  above  organizations  are  located  provide 
that  the  awards  be  binding  in  four  organizations. 

The  New  Orleans  Board  of  Trade,  Ltd.,  has  a  rule  that  an 
appeal  w^ill  not  be  permissible,  unless  the  amount  in  dispute 
exceeds  five  hundred  dollars.  Among  the  trading  bodies,  ap- 
peals are  infrequent,  unless  the  amount  involved  in  dispute  is 
a  large  sum.  After  a  case  is  taken  to  the  committee  on  ap- 
peal, its  decision  is  generally  always  final  and  binding.  The 
time  limit  in  which  an  appeal  will  be  allowed  differs  greatly  in 
the  different  organizations,  varying  from  eight  hours  to  thirty 
days. 

Kevocation  of  the  decision  is  allowed  in  only  three  bodies, 
the  St.  Louis  Merchants'  Exchange,  the  Memphis  Merchants' 
Exchange  and  the  Chicago  Board  of  Trade.  In  St.  Louis  the 
penalty  is  ''paying  such  expense  as  has  been  incurred."  In 
Memphis,  if  a  revocation  occurs,  it  is  the  duty  of  the  secretary 
to  prefer  charges,  the  penalty  being  censure,  suspension  or 
expulsion.  In  none  of  the  bodies  is  the  right  to  revoke  ever 
waived.  A  submission  to  arbitration  in  the  Chicago  Board  of 
Trade  can  be  revoked  by  either  party  after  the  allegations  and 
proofs  of  the  part}^  have  been  closed  and  the  matter  finally  sub- 
mitted to  the  arbitrator  for  decision,  but  it  has  never  been  done. 
By  mutual  agreement,  the  case  can  be  dropped,  in  the  St.  Louis 
Merchants'  Exchange  and  the  New  Orleans  Board  of  Trade, 
Ltd.  None  of  the  organizations  has  any  requirements  for  the 
revocation  of  an  award.  In  case  of  revocation,  the  other  party 
to  the  submission  can  maintain  an  action  for  all  the  expense 
that  he  has  incurred  in  preparation  for  the  arbitration  unless 
otherwise  agreed  to,  in  the  St.  Louis  Merchants'  Exchange. 
This  matter  is  left  to  the  decision  of  the  committee  in  the  Balti- 
more Chamber  of  Commerce  and  the  Chicago  Board  of  Trade. 

There  is  no  requirement  in  any  of  the  organizations  that 
the  award  shall  be  filed  with  the  court.  The  losing  side  must 
fulfill  the  requirements  of  the  award  with  the  prevailing  side 
at  once  in  one  organization,  within  a  reasonable  time  in  two, 
six  days  in  one,  and  ten  days  in  three  organizations.     In  the 


COMMERCIAL  ARBITRATION.  173 

majorit}'  of  cases  if  this  is  not  complied  with,  the  award  can 
be  filed  with  the  court,  and  it  Avill  see  that  the  award  is  en- 
forced. 

The  fees  are  fairly  uniform  for  all  the  organizations  as 
shown  in  the  appendix.  In  five  organizations  they  are  on  a 
sliding  scale  but  of  stated  amounts,  governed  by  the  amount  in- 
volved in  the  dispute.  This  plan  is  used  more  in  the  larger  or- 
ganizations. It  is  generally  paid  to  the  secretary,  w^ho  divides 
it  among  the  arbitrators.  The  fee  for  the  committee  on  ap- 
peal is  generally  the  same  as  that  for  the  arbitration  com- 
mittee, while  for  non-members  it  is,  as  a  rule,  always  some- 
what higher. 

The  Work  of  the  Trading  Body  Aibitration  Committees 

Many  thousands  of  disputes  have  been  settled  in  this; 
country  by  these  arbitration  committees.  The  Memphis  Mer- 
chants' Exchange  has  settled  about  three  thousand  cases.  About 
fifteen  years  ago,  the  Exchange  began  numbering  the  cases  and 
the  last  one  is  number  1,740.  The  Chicago  Board  of  Trade 
has  arbitrated  many  hundreds  of  cases  during  its  fifty-seven 
years  of  existence.  All  of  the  bodies  report  that  the  work  of 
the  committees  has  been  uniforml}^  successful  and  satisfactory 
to  both  parties.  The  Chicago  Board  of  Trade  reports  that, 
"The  committees  are  highly  regarded  by  members  and  non- 
members  in  the  grain  trade.'' 

This,  in  general,  is  the  gist  of  the  matter  of  the  workings 
of  the  arbitration  committees  in  the  trading  bodies  of  the 
United  States.  Arbitration  is  an  essential  part  of  a  trading 
body,  as  the  organization  is  formed  simply  for  business  pur- 

P         *  Commercial  Organizations 

The  idea  of  commercial  arbitration  by  American  chambers 
of  commerce  is  not  new.  We  have  already  seen  that  as  early 
as  1768,  the  New  York  Chamber  of  Commerce  incorporated 
in  its  charter,  given  by  King  George,  a  provision  for  arbi- 
trating business  disx)utes.  The  New  York  Chamber  of  Com- 
merce is  the  leader  among  commercial  organizations  regard- 
ing arbitration. 

The  origin  of  the  New  York  plan  is  of  a  very  complex 
nature.  As  earlier  stated,  four  attemptvS  have  been  made.  The 
first  three  were  unsuccessful.  The  last  and  final  plan  is  based 
upon  the  past  history  of  the  New  York  Chamber  of  Commerce. 


174  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

European  commercial  courts,  stock  exchanges,  trading  bodies; 
the  London  Chamber  of  Commerce,  Canadian  Chamber  of  Com- 
merce and  eleven  American  chambers  of  commerce  and  boards 
of  trade  were  studied  before  this  plan  was  evolved.  Few  of 
them  were  suitable  examples  that  could  be  followed  to  any  great 
extent.  The  committee  then  examined  the  past  records  of 
the  New  York  Chamber  of  Commerce.  Profiting  by  past  mis- 
takes and  basing  the  arbitration  proceedings  upon  the  New 
York  Statutes,  the  present  plan  Avas  formed.  The  European 
commercial  courts  could  not  serve  as  a  guide  due  to  differences 
in  laws  and  customs.  The  London  Court  of  Arbitration  was 
followed  to  a  certain  extent  because  of  a  likeness  of  their 
customs  and  those  of  our  own.  The  plan,  which  was  worked 
out,  is  comparatively  simple. 

Selection  and  Control  of  the  Arbitrators 

First  of  all,  is  the  standing  committee  on  arbitration  which 
is  appointed.  It  has  complete  supervision  of  all  matters  con- 
cerning arbitration  referred  to  the  chamber  of  commerce.  This 
committee  compiles  from  time  to  time,  revises,  and  keeps  a 
list  of  qualified  persons  willing  to  serve  voluntarily,  as  arbi- 
trators. All  names  in  this  list,  are  members  of  the  chamber 
of  commerce.  The  list  is  known  as, — "The  list  of  official  arbi- 
trators of  the  New  Y^ork  Chamber  of  Commerce." 

This  list  of  official  arbitrators  in  a  strictly  commercial  or- 
ganization is  necessary.  In  a  trading  body,  a  committee  can 
easily  be  selected,  which  is  familiar  with  the  terms  of  that  par- 
ticular business  or  trade.  This  is  not  true  for  a  commercial 
organization,  where  many  different  kinds  of  business  are  repre- 
sented. Hence  it  is  easily  seen  that  where  a  committee  may 
be  able  to  arbitrate  all  cases  which  might  arise  in  a  strict 
trading  body  and  every  member  be  familiar  with  the  technicali- 
ties of  the  business,  it  would  be  practically  impossible  for  a 
committee  of  suitable  size  to  be  able  to  handle  all  contentions 
which  might  arise  in  a  commercial  organization. 

The  disputants  can  select  the  standing  committee,  one  man 
from  the  official  list,  or  each  choose  a  man,  who  in  turn  chooses 
another  and  all  three  serve  as  a  committee.  A  member  of  the 
board  of  directors  or  a  man  even  indirectly  interested  in  the 
dispute  cannot  act  as  an  arbitrator. 

The  arbitration  committee  has  power  to  disregard  trivial 
or  unimportant  cases.     The  great  bulk  of  cases  considered  are 


COMMERCIAL  ARBITRATION.  175 

those  dealing  with  fiiiaiicial  and  commercial  differences.    Legal 
questions,  as  a  rule,  are  taken  to  the  courts. 

Conciliation 

This  work  of  conciliation  of  disputes  is  in  all  probability 
the  most  important  branch  of  work  of  the  arbitration  commit- 
tee. Mau}^  disputes  are  settled  in  this  way  and  hence  never 
appear  before  a  group  of  arbitrators.  This  is  preferable  to  arbi- 
tration, if  possible,  as  the  good-will  of  both  parties  is  retained, 
and  their  business  connections  still  exist  as  before.  This  part 
of  the  work  does  not  make  a  show,  but  is  invisible  and  exceed- 
ingly important.  ,,    ,     ,    r  ^ 

Method  of  Procedure 

In  the  case  of  a  dispute,  the  disputants  sign  a  written  form 
of  agreement  "consistent  with  the  existing  provisions  of  law," 
stating  Avhich  of  the  three  forms  of  arbitration  they  wish  to  use, 
and  that  they  will  abide  b}^  the  decision  of  the  arbitrator  or 
arbitrators  selected  by  them. 

After  the  submissions  are  turned  in,  the  parties  are  then 
notified  of  each  folloAving  hearing  as  to  the  time  and  the  place. 

All  hearings  are  informal,  which  greatly  aids  the  dispu- 
tants to  get  into  closer  touch  Avith  each  other.  They  are  not 
public  unless  at  the  request  of  the  contending  parties. 

The  power  of  subpoenaing  and  swearing  witnesses  is  given 
to  the  arbitrators.  Before  evidence  can  be  taken  "the  arbi- 
trators must  be  sworn  by  a  notary  or  other  officer  authorized 
to  administer  oaths,  faithfully  and  fairly  to  hear  and  examine 
the  matter  in  controversy  and  to  make  a  just  award  according 
to  the  best  of  their  understanding." 

Before  taking  any  outside  evidence,  the -arbitrators  iirst 
read  the  two  submissions  and  then  ask  each  side  to  state  for 
what  it  is  contending.  During  the  hearing,  all  evidence  that  is 
material  and  important,  must  be  considered.  At  the  request 
of  either  party,  all  books  and  papers  must  be  produced.  Cross- 
examination  of  witnesses  is  allowed  to  a  reasonable  extent.  A 
competent  stenographer  is  employed  to  take  down  all  evidence. 

The  Decision  and  its  Force 

The  contending  parties  "agree  to  stand  to,  abide  by,  and 

perform  any  and  all  decisions,  awards,  order  or  orders,  and 

iudgment  that  may  be  made  by  the  arbitrators."* 

♦Pamphlet  on  Commercial  Arbitration  of  the  New  York  Chamber  of  Com- 
merce.— pp.  51. 


176  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

The  arbitrators,  iii  reaching  their  decision,  can  either  fol- 
low or  disregard  rules  of  law.  If  the  rights  of  either  party 
are  dependent  upon  a  rule  of  law,  the  arbitrators  decide  the 
point  at  issue.  If  the  point  of  law  is  too  strict  to  be  reason- 
able, it  can  be  set  aside  and  the  case  determined  upon  an  equi- 
table and  common  sense  basis. 

The  disputants,  in  the  submission,  waive  the  privilege  ^^to 
withdraw,  or  revoke  the  submission,  after  the  arbitrator  or 
arbitrators  have  accepted  their  appointment."* 

These  decisions  have  the  weight  of  court  decisions,  and  are 
as  binding.  One  might  take  a  case  to  a  court  and  get  a  deci- 
sion based  upon  a  previous  decision  of  the  arbitrators.  The 
successful  party  can  take  a  decision  of  the  arbitrator  or  arbi- 
trators and  file  it  with  the  Supreme  Court  of  the  State  of  New 
York.  The  award  will  then  have  the  same  power  as  a  supreme 
court  decision.  The  court  will  set  aside  an  award  if  any  of  the 
following  defects  are  present : 

1.  "The  award  has  been  procured  by  corruption,  fraud,  or  other  undue 
means. 

2.  "There  was  evident  partiality  or  corruption  among  the  arbitrators  or 
either  of  them. 

3.  "The  arbitrators  are  guilty  of  misconduct  in  refusing  to  postpone  the 
hearing,  upon  sufficient  cauFe  sliow^n,  or  in  refusing  to  hear  evidence  perti- 
nent and  material  to  the  dispute;  or  of  any  other  misbehavior  by  which  the 
rights  of  any  parties  have  been  prejudiced. 

4.  "The  arbitrators  exceeded  their  powers,  or  so  imperfectly  executed 
them  that  a  mutual,  final  and  definite  award  upon  the  subject  matter  sub- 
mitted, was  not  made."** 

These  records  of  the  cases  and  the  decisions  are  available 
at  all  times  to  the  members  of  the  New  York  Chamber  of  Com- 
merce and  outsiders  as  well,  but  only  upon  a  written  order  of 
the  committee  on  arbitration. 

The  New  York  Chamber  of  Commerce  is  a  very  strong  advo- 
cate that  precedent  should  be  followed  in  all  subsequent  simi- 
lar cases.  In  its  "Handbook  for  Arbitrators"  by  Mr.  Cohen, 
he  says;  "A  series  of  commercial  precedents  has  a  very  im- 
portant value  to  the  business  community  and  the  certainty  of 
knowing  how  important  questions  will  be  answered,  will  serve 

♦"Handbook  for  Arbitrators"  of  the  New  York  Chamber  of  Commerce. 
Prepared  by  Julius  Henry  Cohen  of  New  York  City. 

**"Handbook  for  Arbitrators"  of  the  New  York  Chamber  of  Commerce. 
Prepared  by  Julius  Henry  Cohen  of  New  York  City, 


COMMERCIAL  ARBITRATION.  177 

to  prevent  controversies  in  the  future/'     As  a  result,  the  arbi- 
trators write  an  opinion  for  each  case  as  do  the  courts. 

Each  party  to  the  submission  must  pay  to  the  clerk  the 
sum  of  $60.00  and  a  larger  one  if  the  committee  deems  it  neces- 
sary. Each  arbitrator  receives  f  10.00  per  day  or  part  thereof, 
and  the  stenographer  gets  the  usual  remuneration.  The  costs 
to  non-members  is  the  same. 

Work  of  the  Committee 

Since  the  inauguration  of  this  system,  numerous  conten- 
tions have  been  settled  to  the  extreme  satisfaction  of  both 
parties.  In  practically  every  case  the  defeated  party  has  ac- 
ceded to  the  award.  Cases  involving  botli  large  and  small 
sums  have  been  settled.  Cases  concerning  almost  every  con- 
ceivable kind  of  merchandise  have  been  taken  up.  From  every 
case,  that  has  been  arbitrated  or  conciliated,  comes  the  report 
of  quickness  of  action,  equity  of  judgment,  and  inexpensiveness. 

The  plan  of  the  New  York  Chamber  of  Commerce  has  been 
adopted,  almost  to  the  letter,  by  the  Rochester  Chamber  of 
Commerce  and  the  Cleveland  Chamber  of  Commerce.  A  few 
minor  changes  Avere  made  in  each  case.  This  educational  branch 
of  the  work  is  considered  very  important  by  the  New  York  com- 
mittee. In  its  own  words  it  says,  "Its  largest  opportunity,  as 
its  most  important  duty,  is  to  inspire  increased  regard  for  the 
principles  of  arbitration  the  world  over.''  This  educational 
feature  of  the  work,  the  New  York  Chamber  of  Commerce  is 
over-anxious  to  extend.  This  organization  is  the  best  adapted 
and  equipped  of  any  organization  in  America  for  educating 
other  organizations  to  the  great  value  of  arbitrating  business 
disputes.  O^^^^  pj^„^ 

The  other  plans  occur  among  smaller  organizations.  In 
these  organizations  the  plan  is  not  so  strong  as  that  of  the  New 
York  Chamber  of  Commerce.  Witnesses  are  seldom  sworn,  ex- 
cept in  the  Easton  Board  of  Trade.  In  only  one  organization, 
are  there  any  fees,  and  these  are  the  actual  cost  expenses.  The 
main  weakness  of  all  these  smaller  organizations  is  that  the 
decision  of  the  arbitrators  is  not  binding  upon  the  contending 
parties.  One  organization  reports  that  the  decision  is  binding, 
if  the  disputants  agree  that  it  shall  be  so,  before  the  arbitration 
of  the  dispute. 

There  is  a  great  field  for  the  arbitration  of  business  dis- 


178  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

putes  by  the  smaller  organizations.  Before  arbitration  will  be 
a  success,  the  decisions  of  the  arbitrator  or  arbitrators  must  be 
binding. 

An  arbitration  plan,  similar  or  like  that  of  the  New  York 
Chamber  of  Commerce,  can  be  put  to  use  in  a  town  of  any  size. 
All  that  is  necessary  is  to  have  men  in  the  town  who  are  of 
good  report,  and  "fair  and  square"  in  all  their  dealings  with 
other  men. 

The  idea  of  arbitrating  commercial  and  financial  disputes 
is  becoming  international  in  scope.  This  movement  has  been 
brew  ing  for  some  time.  In  June,  1914,  the  Sixth  International 
Congress  of  Chambers  of  Commerce,  was  held  at  Paris.  On  this 
occasion,  the  American  delegates  presented  an  outline  for  in- 
ternational commercial  arbitration  under  the  direction  of  com- 
mercial organizations.  Their  plan  was  adopted  by  th^  con- 
gress. The  intervention  of  the  European  War  prevented  the 
special  international  conference  on  this  matter. 

In  May  and  June,  1915,  a  Pan-American  financial  confer- 
ence was  held  in  Ncav  York  City.  International  arbitration  of 
commercial  disputes  between  business  men  of  the  United  States 
and  Argentina  was  very  seriously  discussed.  These  meetings 
inspired  a  group  of  representatives  of  Argentina  and  the  United 
States  to  formulate  a  plan  of  arbitrating  business  disputes. 
This  plan  covers  such  disputes  as,  compliance  w^ith  orders  and 
damages  due  to  poor  packing,  quality  of  merchandise,  etc.,  etc. 

No  governmental  supervision  is  called  for  in  any  case. 
The  settlement  of  contentions  is  done  by  means  of  a  tribunal, 
formed  by  the  chambers  of  commerce  of  each  country.  The 
arbitration  of  disputes  is  voluntary. 

This  plan  is  ready  to  be  studied,  and  if  it  is  satisfactory, 
to  be  ratified  by  the  Latin-American  countries.  If  Argentina 
ratifies  it,  it  will  be  tried  first  between  Argentina  and  the 
United  States.  It  is  hoped  that  if  this  plan  gets  into  operation 
between  the  United  States  and  Argentina,  that  it  will  be  an 
incentive  to  the  other  Latin- American  countries  to  adopt  the 
same  or  similar  plans. 

The  main  advantage  that  will  accrue  from  this  step  is,  that 
it  will  greatly  increase  the  Latin-American  markets,  now  open, 
to  American  manufacturers.  It  will  tend  to  alleviate  the  dis- 
trust that  each  holds  for  the  other,  and  create  a  better  and  more 
wholesome  business  spirit  toward  each  other. 


COMMERCIAL  ARBITRATION.  179 

Appendix 
FEES  OF  THE  TRADING  BODIES. 

Baltimore  Chamber  of  Commerce: 

Each  member  of  the  Committee  is  entitled  to  Three  ($3.00)  dollars  for 
each  sitting.  If  the  amount  at  issue  is  over  $1,000.00  the  fee  may  be  in- 
creased to  five  ($5.00)  dollars  for  each  sitting. 

Chicago  Board  of  Trade : 

Where  the  amount  in  controversy  shall  be  under  $500 $10.00 

Where  from  $500  to  $1,000 15.00 

Where  from  $1,000  to  $1,500 20.00 

Where  from  $1,500  to  $2,500 ; 25.00 

Where  over  $2,500  and  upward 50.00 

Indianapolis  Board  of  Trade : 

For  each  award  under  $500  (in  value) $10.00 

For  each  aTvard  from  $500  to  $1,000 12.00 

For  each  award  from  $1,000  to  $1,500 18.00 

For  each  award  from  $1,500  and  upward 25.00 

Memphis  Merchants'  Exchange 

Where  the  arbitration  is  not  based  on  the  determination  of  grades  or  quality, 

If  under  $1,000 $15.00 

If  $1,000  or  over Ij4%  on  amount  of  award 

If  the  arbitration  is  for  the  determination  of  grades  as  shown  by  samples  the 

fee  varies  for  the  different  articles. 
Minneapolis  Chamber  of  Commerce : 
Same  as  the  fees  of  the  Chicago  Board  of  Trade. 
Neiv  Orleans  Board  of  Trade,  Limited : 
$5.00  for  each  case. 
New  Orleans  Stock  Exchange : 
Each  disputant  shall  deposit  w^th  the  treasurer  $25.00  before  a  case  is  taken 

up.     Each  man  on  the  committee  receives  $5.00. 
Philadelphia  Master  Builders'  Exchange: 
Each  member  of  the  committee  of  three  shall  receive  five  ($5.00)  dollars  for 

each  sitting.     Outsiders  shall  each  pay  $25.00  to  the  Exchange  for  the 

use  of  it. 
St.  Louis  Merchants'  Exchange: 

Less  than  $1,000 $10.00 

From  $1,000  to  $2,000. 15.00 

From  $2,000  upward 20.00 

COMMERCIAL  ORGANIZATIONS. 

Springfield,  Mass. ;  Winona,  Minn.,  and  Fort  Dodge,  Iowa,  make  no 
charges  for  their  arbitration. 

The  Easton  Board  of  Trade  charges  only  the  actual  expenses  of  the  case. 
New   York   Chamber  of   Commerce,   Rochester   Chamber  of   Commerce,   and 

Cleveland  Chamber  of  Commerce: 

Each  party  to  the  submission  must  deposit  the  sum  of  $60.00,  or  at  the 
discretion  of  the  committee,  a  larger  amount,  all  of  which  pays  the  necessary 
expenses  as  the  arbitrators'  fees  of  $10.00  per  day  or  part  thereof,  stenog- 
raphers' fees,  paper,  etc. 


CHAPTER  XII. 
The  Chamber  of  Commerce  of  the  United  States 

By  MERLE  THORPE 

Less  than  eight  years  ago  every  first-class  country  in  the 
world  had  its  national  federation  of  business  except  two- 
Turkey  and  the  United  States.  The  business  men  of  Great 
Britain,  France,  Switzerland,  Austria,  Italy  and  Belgium  had 
been  organized  for  nearly  a  quarter  of  a  century,  Holland  and 
Germam^  for  a  hundred  years. 

In  the  spring  of  1912  a  group  of  business  men  met  with 
the  President  of  the  United  States  and  the  Secretary  of  Com- 
merce and  Labor  and  laid  the  foundation  for  the  United  States 
Chamber  of  Commerce.  Today  this  national  federation,  with 
its  1,256  trade  and  commercial  organizations  and  their  under- 
lying membership  of  670,000  men,  is  the  largest  in  the  world. 

President  Taft,  in  his  message  to  Congress  in  December, 
1911,  urged  the  importance  of  coordinating  the  local  commer- 
cial organizations,  trade  associations,  etc.,  into  a  central  body 
for  the  purpose  of  increasing  their  efficiency  and  extending 
their  usefulness,  and  of  encouraging  commerce  between  the 
states  and  insular  possessions  of  the  Union  and  foreign 
countries.  The  suggestion  found  favor  and  resulted  in  the 
President  directing  the  Secretary  of  Commerce  and  Labor  to 
initiate  a  movement  for  the  creation  of  a  national  commercial 
organization. 

Commercial  bodies  throughout  the  United  States  were  ac- 
cordingly invited  to  send  representatives  to  a  conference  in 
Washington,  April  22,  1912,  to  set  the  necessary  machinery  in 
motion.  The  sessions  lasted  tAvo  days,  and  the  outcome  was 
the  Chamber  of  Commerce  of  the  United  States,  with  Harry 
A.  Wheeler  Vice-president  of  the  Union  Trust  Company,  Chi- 
cago, as  its  first  president. 

Mr.  \Mieeler  held  the  presidency  two  years,  and  was  suc- 
ceeded in  1914  by  John  H.  Fahey  of  Boston,  who  also  held 
the  office  two  terms.  R.  Goodwyn  Rhett,  President  People's 
National  Bank,  Charleston,  S.  C,  was  elected  in  1916,  and  re- 

180 


THE  CHAMBER  OF  COMMERCE  OF  THE  UNITED  STATES.       181 

elected  in  1917.  Harry  A.  Wheeler  in  1918  was  again  called 
to  the  presidency,  and  in  1919  was  succeeded  by  Homer  L. 
Ferguson,  President  of  the  Newport  News  Shipbuilding  Com- 
pany, Newport  News,  Va.  Elliot  H.  Goodwin  was  appointed 
general  secretary  when  the  office  was  created  in  1912,  and  still 
holds  tliat  position. 

The  steady  growth  of  the  National  Chamber  is  shown  by 
the  following  table : 


Organizations 

States 

Associate  and  Individual  Members 

April  1913—  326 

43 

April  1914—  549 

47 

1954 

April  1915—  646 

47 

2724 

April  1916—  737 

48 

3490 

April  1917—  919 

48 

5716 

April  1918—1041 

48 

7447 

April  1919—1177 

48 

10193 

Dec.    1919—1256 

48 

11900 

Embraced  in  this  membership  are  organizations  and  indi- 
viduals in  every  state  in  the  Union,  and  in  Alaska,  Hawaii, 
Porto  Rico  and  the  Philippines ;  also  the  American  Chambers  of 
Commerce  in  London,  Buenos  Aires,  Paris,  Havana,  Naples, 
Constantinople  and  Rio  de  Janeiro. 

The  New  Nationalism  in  Business 

What  has  brought  about  this  new  development  in  Ameri- 
can life?  What  common  impulse  lias  stirred  this  great  re- 
sponsible body  of  American  business  men? 

Any  movement  that  has  behind  it  670,000  people  is  preg- 
nant with  significance.  When  in  eight  years  it  can  enlist 
670,000  business  men  who  direct  and  control  the  principal  en- 
terprises in  the  country,  it  strikes  deep  at  the  roots  of  Ameri- 
can life. 

Tt  is  no  longer  enough  that  a  mere  handful  of  men,  the 
leaders  of  the  world's  affairs,  shall  be  concerned  with  the  na- 
tion's business.  Our  collective  problems  have  become  our  indi- 
vidual problems.  Business  men  have  felt  the  want  for  some 
central  organization  that  would  promote  a  broader  understand- 
ing of  business  in  its  national  phase,  that  would  apply  to  the 
industry  of  the  nation  the  sam^  principles  of  cooperation  that 
have  done  so  much  for  their  own  business.  They  subscribed  to 
the  chamber  of  commerce  idea :  A  unity  of  purpose  and  of  ac- 
tion on  the  part  of  business  men. 


1 


182  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

Addressing  the  first  annual  meeting  of  the  national  cham- 
ber, President  Taft  said : 

^'This  organization  has  been  perfected  at  a  time  when  it 
can  be  especially  useful.  I  have  been  surprised  in  going  about 
the  country  to  find  that  there  is  no  town  and  no  village  so  small 
that  it  does  not  have  either  a  board  of  trade  or  a  chamber  of 
commerce.  Now  there  is  not  any  reason  why  those  associations 
should  not  be  units  that  go  to  make  up  together,  with  the 
larger  organizations  of  larger  towns  and  cities,  where  there  is 
a  real  trade  and  real  commerce,  the  constituency  of  this  great 
federation;  and  I  speak  of  the  movement  for  the  purpose  of 
showing  the  power  that  this  national  federation  has  by  refer- 
endum to  all  those  member  organizations  to  gather  from  them 
the  best  public  opinion  that  there  is,  in  order  to  influence  the 
legislation  of  the  country,  so  far  as  that  may  be  properly  in- 
fluenced.'' 

Two  years  later  President  Wilson,  addressing  the  national 
chamber,  said : 

"I  have  followed  with  a  great  deal  of  interest  the  work  of 
this  association.  You  are  beginning  to  know  the  other  parts  of 
the  country  just  as  well  as  you  know  your  own  part  of  it; 
and,  better  than  that,  you  are  beginning  to  know  what  the 
other  parts  of  the  country  think  as  well  as  what  your  part  of 
the  country  thinks.  And  it  will  often  happen,  I  dare  say,  that 
you  will  find  that  other  parts  of  the  country  have  an  idea  or 
two.  And  very  few  instrumentalities  are,  or  will  be,  more 
serviceable  than  yours  in  this  digestion  and  comparison  of 
views,  this  frank  assessment  of  the  opinion  of  business  men, 
at  least,  of  the  country,  with  regard  to  all  great  matters  of 
public  policy.  I  congratulate  the  country  upon  having  such  an 
instrumentality,  and  I  think  your  own  committees  will  testify 
that  they  have  a  broader  conception  of  what  this  association 
can  do  than  they  had  before,  and  that  they  have  this  as  their 
leading  conception,  that  the  life  of  this  country  does  not  reside 
even  chiefly  in  any  center  of  population  of  the  United  States." 

Determining  Chamber  Policies 

Policies  of  the  national  chamber  are  determined  by  the 
referendum  of  a  two-thirds'  vote  of  the  member  organizations, 
and  in  annual  or  special  meetings  by  a  two-thirds'  vote  of  the 
delegates  from  the  several  organizations.     The  former  method 


THE  CHAMBER  OF  COMMERCE  OF  THE  UNITED  STATES.       183 

of  ascertaining  business  opinion  throughout  the  country  is 
growing  in  popularity  among  business  men,  and  the  force 
of  their  views  thus  registered  is  felt  in  the  country's 
general  commercial  and  industrial  progress.  Members  of 
Congress  and  of  legislatures  have  expressed  appreciation 
of  these  declarations  by  business  men  because  through 
them  they  are  able  to  size  up  situations  from  an  angle 
not  afforded  by  any  other  source.  Included  in  the  referendum 
vote  are  the  organizations  in  the  small  city  as  well  as  those  in 
the  greatest  metropolis  so  that  when  the  returns  come  in  the 
national  chamber  has  the  opinion  of  all  elements  in  the  world 
of  business,  and  not  merely  the  opinion  of  a  single  group  or 
section. 

Before  a  question  is  submitted  to  the  organizations  for  a 
vote,  the  committee  having  the  problem  in  hand  makes  a  care- 
ful investigation  and  reports  its  findings  and  recommenda- 
tions to  the  board  of  directors  of  the  national  chamber.  If  the 
board  decides  to  submit  the  recommendations,  arguments  are 
prepared  for  and  against  them,  and  they  are  sent  to  the  mem- 
ber organizations,  which  have  fortj^-five  days  in  which  to  give 
them  consideration.  The  national  chamber  is  committed  by  a 
two-thirds'  vote.  Failing  to  obtain  a  two-thirds'  vote,  the  prop- 
osition is  lost.  Every  member  organization,  however  small  in 
numbers,  has  one  vote.  No  organization,  however  large,  has 
more  than  ten  votes. 

Senator  Charles  Curtis,  a  recognized  leader  in  Congress, 
discussing  the  referendum  plan  of  ascertaining  public  senti- 
ment, said : 

'^Congressmen  evidently  were  impressed  by  the  national 
chamber's  referendum  on  the  railroad  question,  it  being  plain 
that  action  was  taken  after  the  business  men  of  the  various 
organizations  had  given  the  subject  careful  attention.  A  state- 
ment by  folks  with  whom,  we  are  acquainted  of  a  conclusion 
reached  as  the  outgrowth  of  study  for  a  period  of  days,  or 
weeks,  carries  weight.  When  senators  and  representatives 
learned  of  the  action  of  local  commercial  organizations  on  the 
proposed  railroad  legislation,  they  appeared  eager  for  all  the 
information  available,  and  gladly  gave  consideration  to  the 
principles  advocated.  Even  those  who  were  not  in  harmony 
with  the  national  chamber's  railroad  platform  had  respect  for 
the  manner  of  its  creation.    The  national  chamber  presented  no 


184  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

bill.  It  left  that  feature  of  the  proposed  legislation  to  Con- 
gress. Its  simple  declaration  of  principles  appealed  to  all  who 
had  been  trying  to  frame  legislation,  and  I  find  that  several 
things  the  national  chamber  stands  for  had  been  incorporated 
in  both  the  pending  railroad  measures.  Regardless  of  the  out- 
come of  the  proposed  legislation,  the  Chamber  of  Commerce  of 
the  United  States  has  set  an  example  of  how  to  present  helpful 
information  to  Congress  which  others  engaged  in  similar  work 
could  follow  with  profit." 

National  Chamber  Activities 

Perhaps  the  national  chamber's  greatest  service  to  the 
country  was  in  directing  war  activities.  Recognizing  the  tre- 
mendous task  of  mobilizing  all  the  resources  of  the  Nation  for 
the  successful  prosecution  of  the  war,  and  the  special  duty  of 
business  men  to  aid  in  every  possible  way,  the  national  chamber 
placed  at  the  disposal  of  the  government  all  the  facilities  of  its 
organization  for  any  use  to  which  the^^  could  be  employed.  The 
first  call  came  through  the  Secretary  of  War,  when  he  asked  for 
the  appointment  of  local  committees  throughout  the  country 
to  cooperate  with  the  district  quartermasters  in  the  purchase  of 
war  supplies.  These  committees,  speedily  brought  into  being, 
rendered  valuable  service. 

The  war  service  committees,  organized  to  act  with  the  gov- 
ernment's war  industries  board,  performed  highly  important 
tasks  the  last  year  of  the  war,  and  were  doing  their  best  work 
Avhen  the  armistice  was  signed. 

The  national  chamber  called  a  war  convention  at  Atlantic 
City,  and  put  into  operation  a  program  which  brought  every 
business  interest  in  the  United  States  solidly  into  line  for  ev- 
erything the  government  wanted  done.  The  convention  said  to 
the  Government:  ^^You  name  it,  and  we  will  go  over  the  top 
with  it."  And  there  was  no  faltering  on  the  part  of  American 
business  men  while  the  fighting  was  in  progress. 

After  the  armistice,  a  great  reconstruction  convention  was 
held  at  Atlantic  City  which  set  in  motion  the  machinery  for 
pulling  the  country  together  industrially. 

The  latest  achievement  of  the  national  chamber  was  to 
bring  about  a  conference  at  Atlantic  City  of  representative  busi- 
ness men  of  Belgium,  France,  Great  Britain,  Italy  and  the 
United  States  for  the  purpose  of  making  plans  for  reopening 


THE  CHAMBER  OF  COMMERCE  OV  THE  UNITED  STATES.       185 

the  channels  of  commerce.  It  has  been  regarded  as  the  most 
important  meeting  of  business  men  since  the  signing  of  the 
armistice. 

Membership  Qualifications 

Every  commercial  or  manufacturers'  association  not  or- 
ganized for  private  purposes  is  eligible  for  membership  in  the 
national  chamber.  Such  organizations  are  of  two  classes 
designated  as  follows:  First — Local  or  state  commercial  or 
business  organizations  whose  chief  purpose  is  the  development 
of  the  commercial  and  industrial  interests  of  a  single  state,  city 
or  locality.  Second — Local,  state,  interstate  or  national  or- 
ganizations whose  membership  is  confined  to  one  trade  or  group 
of  trades. 

In  addition,  persons,  firms  and  corporations  holding  mem- 
bership in  any  organization  admitted  to  the  national  chamber 
are  eligible  for  election  as  associate  and  individual  members. 
These  members  receive  the  regular  publications  of  the  national 
chamber  and  may  avail  themselves  of  the  facilities  of  the  na- 
tional headquarters,  may  attend  all  regular  and  special  meet- 
ings of  the  chamber  and,  subject  to  the  rules  of  such  meetings, 
may  have  the  privilege  of  the  floor;  but  they  are  not  entitled 
to  vote  except  as  duly  accredited  delegates  of  organization 
members.  The  purpose  of  creating  associate  and  individual 
memberships  was  to  secure  the  direct  and  continuous  interest 
.n  the  work  of  the  national  chamber  of  the  business  men  in 
9YeTY  aggressive  section  of  the  country  Avho  represent  in  their 
organizations  and  in  their  communities  leadership  and  con- 
structive ideas. 

An  association  affiliated  with  the  national  chamber  having 
twenty-five  members  is  entitled  to  one  delegate  and  one  vote, 
and  for  each  two  hundred  members  in  excess  of  twenty-five,  one 
additional  delegate  and  one  vote;  an  association  of  less  than 
twenty-five  members  may  be  admitted  to  membership  if  in  the 
judgment  of  the  board  of  directors  its  importance  justifies  it, 
and  is  entitled  to  one  delegate  and  one  vote,  but  no  association 
is  entitled  to  more  than  ten  delegates  and  ten  votes. 

The  rate  of  dues  for  each  organization  member  is  based 
upon  the  scheduled  annual  income  from  membership  fees  and 
is  approximately  one-half  of  one  percent  of  such  income;  pro- 
vided, however,  that  no  organization  member  shall  pay  annual 


186  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

dues  of  less  than  $10,  or  more  than  |700.     Associate  members 
pay  annual  dues  of  $100 ;  individual  members,  $25. 

How  Governed 

The  national  chamber's  board  of  directors  is  selected  by 
districts  to  represent  all  sections  of  the  country.  Twenty-five 
members  are  active  and  hold  office  for  two  years,  thirteen  being 
chosen  at  the  annual  meeting  in  one  year  and  twelve  in  the  suc- 
ceeding year.  The  board  has  supervision  of  the  affairs  of  the 
national  chamber,  selects  the  officers — a  president,  four  vice- 
presidents  and  a  treasurer,  who  are  ex-officio  members  of  the 
board.  An  executive  committee  of  eleven  members  of  the  board, 
with  the  president  ex-officio,  acts  for  the  board  in  the  interim 
between  its  meetings.  The  directors  are  nominated  by  a  com- 
mittee selected  by  the  national  councillors. 

The  national  council  is  composed  of  one  representative 
from  each  organization  member  in  the  national  chamber.  It 
was  created  for  the  purpose  of  bringing  about  continuous  co- 
operation with  the  board  of  directors  of  as  many  able  business 
men  as  possible  in  every  section  of  the  country,  and  it  acts  in 
an  advisory  capacitj^  to  the  board.  It  is  the  duty  of  the  national 
councillor  to  bring  to  the  attention  of  the  national  chamber  all 
matters  that  come  to  his  notice  in  his  own  locality  which  might 
be  valuable  to  the  members  of  the  chamber. 

Much  of  the  work  of  the  national  chamber  is  carried  on 
through  standing  and  special  committees  which  report  to  the 
board  of  directors.  It  is  particularly  necessary  that  all  com- 
mittees should  be  broadly  representative  and  that  the  conclu- 
sions reached  should  be  national  in  character.  These  commit- 
tees include : 

Budget  and  efficiency;  federal  trade;  international  com- 
mercial arbitration;  railroads;  statistics  and  standards;  Argen- 
tine arbitration;  ocean  transportation;  highways;  public  utili- 
ties; employment  of  soldiers  and  sailors;  cost  accounting;  fire 
waste  and  insurance;  finance  and  budget;  building;  financing 
building ;  incorporation  of  chamber ;  reorganization  of  chamber ; 
revision  by  laws;  war  service  executive;  federal  taxation  com- 
mittee ;  postal  facilities ;  publicity ;  national  defense. 

A  Business  Service 
Through  its  Washington  office,  the  national  chamber  pro- 
vides direct  service  to  its  members  in  response  to  requests  for 


THE  CHAMBER  OF  COMMERCE  OF  THE  UNITED  STATES.       187 

information,  and  also  through  its  publications.  A  general  bul- 
letin issued  weekly  gives  its  members  prompt  and  accurate 
notice  of  all  activities  of  executive  departments  affecting  busi- 
ness. Legislative  bulletins  of  the  national  chamber,  also  issued 
weekly  during  the  sessions  of  Congress,  constitute  a  thorough 
digest  of  current  national  legislation  affecting  commerce  and 
industry. 

A  special  division  of  information  is  maintained  at  the  na- 
tional headquarters  under  the  direction  of  business  and  legal 
experts.  Members  are  furnished  direct  with  advice  and  data 
obtained  from  official  and  other  first-hand  sources  available  in 
the  government  departments,  the  Library  of  Congress,  or  else- 
where in  Washington.  Information  and  assistance  is  also  fur- 
nished to  members  who  apply  personally  at  the  national  head- 
quarters. 

The  Nation- s  Business^  the  official  magazine  of  the  national 
chamber,  is  published  monthly,  giving  a  careful  and  readable 
interpretation  of  the  business  news.  This  is  the  editorial  con- 
fession of  faith  of  the  Nation's  Business : 

"To  create  a  national  viewpoint  for  American  business,  breaking  down 
provincialism  and  narrowness. 

"To  stimulate  at  the  same  time  community  development. 

"To  advocate  foreign  trade  as  a  natural  and  necessary  growth,  making 
stable  our  domestic  trade. 

"To  emphasize  the  value  of  organization — of  teamwork  in  business. 

"To  serve  American  business  by  furnishing: 

"A  perspective  of  the  world's  commercial  activities  with  their  interpreta- 
tion. 

"A  clearing  house  of  the  new  ideas  in  organized  business. 

"An  intelligent  report  on  current  relations  of  government  and  business. 

"To  temper  all  with  a  serene  belief  in  the  idealism  of  American  business. 

"To  find  in  all  business  the  romance  and  the  enthusiasm  which  each  man 
finds  In  his  business. 

"To  be  human — in  the  way  that  business  is  to  business  men. 

"In  this  faith  we  shall  strive  to  express  the  sanity,  the  integrity,  and  the 
stability  of  American  business.' 

Organization  Membership  Service 

The  organization  service  bureau  of  the  national  chamber  is 
equipped  to  furnish  commercial  and  trade  organization  mem- 
bers with  data  in  regard  to  their  organization  structure,  meth- 
ods of  work  and  activities.  It  is  a  clearing  house  for  such  in- 
formation and  affords  a  means  for  making  the  successful  meth- 


188  p:fficiency  and  characteristic  activities.    : 

ods  and  achievements  of  one  organization  the  common  property 
of  all. 

Information  is  largely  acquired  through  correspondence 
and  questionaires,  from  official  publications  of  organizations 
and  direct  study  on  the  ground.  It  is  dispensed  through  let- 
ters in  replies  to  inquiries,  news-letters  and  pamphlets,  and 
through  personal  visits  of  the  chief  of  the  bureau  to  organiza- 
tions. 

Through  its  semi-monthly  news-letter  to  secretaries,  the 
bureau  brings  at  regular  intervals  to  the  attention  of  commer- 
cial organizations  new  phases  of  the  work  of  particular  organi- 
zations in  the  field.  It  is  a  valuable  instrument  also  in  carry- 
ing on  investigations  of  any  problems  or  line  of  endeavor  which 
may  at  the  moment  be  paramount.  The  bureau's  pamphlets 
incorporate  the  results  of  it«  special  inquiries  and  cover  to  date 
the  following  subjects:  Organization  structure  and  method; 
traffic  bureaus;  community  advertising  and  publicity;  agri- 
cultural bureaus  and  committees;  industrial  development;  Avar 
activities  of  commercial  organizations ;  commercial  organization 
credit  bureaus,  and  building  a  modern  chamber  of  commerce. 

The  chief  of  the  bureau  devotes  a  large  part  of  his  time 
responding  to  requests  for  the  bureau's  field  service.  On  such 
visits  to  organizations  the  chief  of  the  bureau  confers  with 
their  boards  of  directors,  committee  chairmen  and  members  re- 
garding their  local  problems,  and  addresses  their  memberships 
on  subjects  pertinent  to  commercial  organization  work  and 
aims. 

It  is  the  purpose  of  the  organization  service  bureau  to 
continue  gathering,  testing  and  classifying  information  to  the 
end  that  there  will  always  be  available  to  the  organization 
members  of  the  national  chamber  a.  fund  of  data  as  to  hoAV  the 
several  organizations  have  met  and  solved  their  problems. 

A  Program  of  Expansion 

Experience  has  demonstrated  that  the  time  has  come  when 
it  is  necessary  to  expand  the  national  chamber's  organization 
to  accord  with  its  increasing  responsibilities  and  obligations, 
and  to  assure  representation  for  every  division  of  commerce 
and  industry.  With  this  situation  placed  before  them,  delegates 
to  the  annual  meeting  at  St.  Louis  recommended  that  the  board 


THE  CHAMBER  OF  COMMERCE  OF  THE  UNITED  STATES.      189 

of  directors  proceed  to  bring  about  such  structural  changes  as 
are  needed. 

The  plan  of  operation  under  which  the  chamber  has  con- 
ducted its  affairs  proved  well  adapted  to  conditions  arising  at 
the  time  the  chamber  was  established  and  during  the  period 
prior  to  the  war,  but  the  war  brought  new  conditions  and  the 
changes  contemplated  will  change  the  structure  from  one  of 
general  character  to  one  of  divisional  operation  and  responsi- 
bility. In  making  such  changes  all  activities  of  the  chamber 
will  be  so  coordinated  that  each  will  be  related  to  the  whole  in 
a  manner  to  guard  all  policies  and  precedents  that  have  char- 
acterized it  during  its  seven  years  of  life. 

The  structure  of  American  business,  if  cross-sectioned,  is 
found  to  consist  of  the  following  definite  and  distinct  depart- 
ments, and  it  is,  therefore,  proposed  to  reorganize  the  national 
chambers  machinery  to  conform  to  these  natural  divisions  by 
the  creation  of  departments  to  operate  for  and  in  their  inter- 
ests: 

Industrial  production — embracing  manufactures,  mining 
and  even  perhaps  agriculture,  if  agricultural  interests  some  day 
should  desire  to  federate  with  organized  business. 

Domestic  distribution — embracing  all  wholesale  and  retail 
distributors  of  merchandise. 

Foreign  commerce — embracing  organizations  that  have  to 
do  with  exports  and  imports. 

Transportation  and  communication — embracing  associa- 
tion related  to  railroad  operation,  telephone,  telegraph,  public 
utilities  and  water  transportation,,  both  ocean  and  inland. 

Finance — embracing  all  association  of  banks  and  bankers. 

Insurance — embracing  fire,  life,  casualty,  liability  and  ma- 
rine associations. 

These  six  departments  include  virtually  all  of  the  elements 
of  commerce  and  industry.  A  seventh  Avithin  the  chamber 
would  be  that  of  civic  development,  which  would  constitute  a 
clearing  house  for  beneficial  activities  in  this  field  as  differen- 
tiated from  commercial  development,  which  latter  would  be 
abundantly  cared  for  in  the  other  divisions. 

National  Chamber  to  Build 

The  national  chamber  has  bought  a  property  in  the  very 
heart    of     Washington     where    it    will     erect    a     home    for 


190  EFFICIENCY  AND  CHARACTERISTIC  ACTIVITIES. 

American  business.  It  is  just  across  Lafayette  Square  from 
the  White  House.  Washingtonians  know  it  as  "the  old  Cor- 
coran place."  The  lot  is  at  the  corner  of  Connecticut  Avenue 
and  H.  Street.  The  new  building  will  be  erected  where  former- 
ly stood  the  house  that  was  at  different  times  the  home  of 
Francis  Scott  Key,  Daniel  Webster,  and  Mr.  Corcoran,  founder 
of  the  Corcoran  Art  Gallery.  The  structure,  five  stories  high, 
will  cost  approximately  $2,500,000. 


PART  II. 

Methods  of  Organization  and 
Operation 


191 


CHAPTER  XIII. 
Membership 

Democracy  as  a  Factor  in  Chamber  of  Commerce  Membership 
By  HOWARD  STRONG 

Tlie  average  commercial  organization  has  during  the  past 
ten  3'ears  assumed  an  entirely  new  form,  and  in  this  new  form 
has  made  a  new  assumption  and  taken  on  a  new  responsibility. 

The  old  board  of  trade  was  essentially  an  organization  for 
the  protection  of  property  rights.  It  was  as  a  matter  of  fact  a 
board  of  trad — ition.  It  was  primarily,  perhaps  exclusively, 
interested  in  the  promotion  of  the  business  interests  of  the  com- 
munity. It  did  not  pretend  to  concern  itself  with  anything  out- 
side of  these  interests.  This  was,  of  course,  perfectly  proper. 
The  organization  was  not  sailing  under  false  colors,  as  long  as 
the  promotion  of  the  business  interests — the  protection  of  prop- 
erty rights — was  its  declared  intention.  But,  was  the  organi- 
zation democratic? 

Democrac3^,  I  think,  implies  activity  in  the  interest  of  the 
whole  people.  We  all  recognize,  of  course,  that  the  development 
of  the  business  of  a  city  is  essential  to  the  welfare  of  every 
man,  woman  and  child  in  that  city,  but  a  large  proportion  of 
the  citizens  of  any  community  are  not  interested,  or  think  they 
are  not  interested,  in  retail  credits,  in  traffic  facilities,  in  grain 
inspection,  and  other  activities  which  were  characteristic  of 
the  old  board  of  trade.  And,  is  it  not  true  that  the  average  man 
of  the  community  felt  that  the  board  of  trade  was  essentially 
and  legitimately  for  the  promotion  of  business  interests,  and 
that  he  had  no  vital  concern  in  it  or  its  doings? 

The  Organization  of  Today 

The  new  organization  has  broken  away  from  the  old  con- 
ception. It  is  called  usually  the  association  of  commerce,  but 
all  of  us  are  proud  to  think  of  it  and  designate  it  as  an  associa- 
tion of  citizenship,  which  takes  up  every  vital  question  of  in- 
terest to  the  whole  people.    It  is  an  organization  for  community 

193  7 


194  METHODS  OF  ORGANIZATION  AND  OPERATION. 

service.  In  other  words,  it  makes  the  clear  assumption  that  it 
is  no  longer  an  instrument  for  the  benefit  of  a  certain  group  of 
the  community,  but  that  it  exists  for  the  promotion  of  the  wel- 
fare of  the  whole  community.  Since  this  assumption  is  unmis- 
takable, is  not  the  responsibility  for  community  service,  which 
means  democracy,  equally  unmistakable,  and  must  not  our 
present-day  organizations  become  democratic  if  they  are  to  sail 
under  true  colors? 

Democracy,  as  I  see  it,  is  a  matter  of  dimensions,  vertical 
and  horizontal.  True  democracy  requires  that  the  vertical 
dimensions  be  unbroken,  that  the  interests  of  every  class,  of 
every  strata,  be  represented.  True  democracy  requires,  as  well, 
that  the  horizontal  dimension  be  complete,  that  every  section, 
everv^  neighborhood,  have  proper  consideration. 

In  our  struggle  for  democracy  we  start  with,  a  prejudice  to 
overcome.  I  think  you  will  grant  that  in  every  community 
there  is  a  suspicion  abroad  that  we,  the  big  central  commercial 
organization  of  the  city,  do  not  represent  every  strata  and  class 
of  society.  This  is  a  natural  suspicion.  In  the  nature  of  the 
case,  because  our  support  must  come  largely  from  the  employ- 
ing class,  because  this  class  is  most  vitally  interested  in  our 
commercial  and  industrial  activities,  because  our  forebears, 
the  board  of  trade,  represented  this  class,  we  can  hardly  expect 
anything  else.  Furthermore,  we  must  acknowledge  that  some 
of  our  members  still  have  this  conception,  and  that  they  think 
our  activities  are  legitimately  for  the  benefit  of  this  single  group 
alone. 

The  Time  for  Action 

It  is  our  first  duty  to  correct  this  misapprehension.  Pri- 
marily we  must  avoid  the  appearance  of  evil.  It  is  certainly 
wise,  and  I  believe  it  is  usually  possible  for  us,  as  secretaries,  to 
keep  our  organizations  away  from  the  consideration  of  ques- 
tions upon  which  their  attitude  is  certain  to  be  misunderstood. 
In  my  mind  it  is  almost  universally  a  mistake  for  the  commer- 
cial organization  to  take  active  part  in  labor  questions.  No 
matter  how  sincere  may  be  our  conclusions,  if  we  align  our- 
selves with  the  one  side  or  with  the  other,  we  shall  be  misunder- 
stood and  our  motives  questioned.  The  best  way  to  democracy 
that  I  know  of  is  through  democratic  action.  If  the  right  i& 
upon  the  side  of  the  public  service  corporation,  act  fearlessly 
and  make  the  fullest  possible  statement  of  your  reasons.     If 


DEMOCRACY  IN  CHAMBER  OF  COMMERCE  MEMBERSHIP.      195 

it  is  on  the  other  side,  act  with  equal  fearlessness,  and  you  will 
probably  find  that  the  public  service  corporation,  which  is 
usually  made  up  of  reasonable  men,  like  the  rest  of  us,  will 
acquiesce  and  perhaps  respect  you  the  more. 

When  it  is  necessary  to  take  action  with  reference  to  some 
public  question  upon  which  the  community  is  divided,  it  is  fre- 
quently possible  to  clarify  the  problem  in  the  minds  of  your  citi- 
zens, and  materially  to  assist  in  reaching  a  solution  without 
necessarily  aligning  yourselves  with  either  faction. 

The  Necessity  of  Bigness 

We  are  all  familiar  with  a  charge  that  our  organization 
represents  primarily  the  jobbing  interests,  the  retail  interests, 
the  manufacturing  interests  or  some  other  special  group  of 
business  men.  The  best  way  that  I  know  of  to  meet  this  criti- 
cism, is  so  to  distribute  the  activities  of  your  organization  and 
the  attention  of  your  directors  and  officers,  so  to  keep  the  bal- 
ance, that  there  can  be  no  question  as  to  your  equal  interest  in 
every  group  and  its  activities.  Another  suggestion:  It  is  an 
excellent  plan,  if  it  can  be  arranged,  for  the  same  man  to  act  as 
secretary  both  of  your  jobbing  committee  or  division  and  of 
your  retail  committee  or  division,  for  here  is  where  the  greatest 
controversy  is  likely  to  arise.  I  know  one  organization  which 
has  avoided  much  acrimonious  criticism  between  these  two 
groups  by  having  the  secretaries  of  their  retail  and  wholesale 
merchants  boards  with  desks  in  the  same  room.  When  two  men 
fill  their  pipes  from  the  same  tobacco  pouch  and  swear  at  the 
same  steam  radiator  all  winter  long,  it  is  going  to  be  difficult 
for  them  to  have  a  serious  disagreement  in  their  work,  and  the 
attitude  of  the  secretary  finds  its  reflection  in  the  attitude  of 
the  board  or  the  committee  for  which  he  is  working. 

Again,  in  the  larger  cities,  there  is  a  constant  tendency  to 
suspect  the  central  organization  of  working  for  the  down-town 
interests  in  opposition  to  outlying  districts.  Even  though  some 
of  the  larger  improvements  may  seem  more  fundamental,  it  is 
well  worth  while  for  the  central  organization  to  give  a  consider- 
able share  of  its  time  to  local  improvements.  Jump  at  the  first 
chance  to  decide  anything  in  favor  of  an  outlying  section  of  the 
city  in  opposition  to  the  interest  of  the  down-town  section,  and 
you  have  done  more  to  convince  the  whole  community  of  your 


196  METHODS  OF  ORGANIZATION  AND  OPERATION. 

honesty  and  to  secure  the  support  of  the  community,  than  years 
of  protestations  of  sincerity  can  accomplish. 

Much  as  the  secretary  should  endeavor  to  stay  in  the  back- 
ground and  to  keep  his  officers  and  directors  and  committee 
men  in  the  limelight,  it  is  nevertheless  true  that,  in  the  mind 
of  the  ordinary  citizen,  the  attitude  of  the  secretary  reflects  in 
a  large  degree,  the  policy  of  his  organization.  Perhaps  no  one, 
therefore,  is  in  as  strong  a  position  as  the  secretary  to  convince 
a  community  of  his  organization's  desire  for  democracy. 


CHAPTER  XIV. 

The  Best  Method  of  Sustaining  and  Increasing 

Membership 

By  BYRES  H.  GITCHELL 

When  the  subject  was  first  assigned  to  me  I  proceeded  to 
prepare  a  questionaire  covering  all  of  those  questions  which 
anybody  could  possibly  ask  who  is  thinking  of  the  membership 
problem  of  a  commercial  organization. 

I  succeeded  in  making  up  a  list  of  forty-eight  questions  and 
had  about  decided  to  send  them  out  to  all  the  members  of  these 
organizations  with  the  request  that  each  answer  all  of  these 
questions  frankly  and  fully.  I  laid  the  questionaire  aside  for 
ten  days  and  when  I  took  the  matter  up  again  I  found  that  if 
this  questionaire  were  submitted  to  me  by  any  other  member  of 
the  association  I  could  not  answer  more  than  eight  or  ten  of 
the  questions  in  any  way  that  would  be  helpful  in  preparing 
for  the  discussion  of  the  subject  assigned  to  me. 

Therefore,  I  decided  to  write  up  a  paper  presenting  the 
case  in  favor  of  the  employment  of  membership  solicitors  in 
the  light  of  our  own  experience  in  Detroit. 

Experience  in  Other  Cities 

The  paper  was  written  and  then  I  had  before  me  Mr. 
Mead's  injunction  not  to  present  local  experiences  only.  In 
order  to  ascertain  the  experience  of  secretaries  in  other  parts 
of  the  country,  I  submitted  copies  of  my  proposed  paper  to 
eight  or  ten  commercial  organizations  whose  membership  prbb- 
lems  were  much  similar  to  those  which  we  in  Detroit  were  still 
trying  to  solve.  I  asked  these  gentlemen  if  they  would  read  my 
paper  and  criticise  it. 

To  seventy-seven  other  members  of  the  American  and  Cen- 
tral associations  I  did  not  send  a  copy  of  my  proposed  paper, 
but  I  did  ask  them  if  they  would  write  me  a  letter  outlining 
their  ^ews  on  this  subject,  making  it  a  point  to  answer  the 
following  five  questions: 

197 


198  METHODS  OF  ORGANIZATION  AND  OPERATION. 

1.  Do  you  employ  a  membership  sales  force  in  your  organization;  if  so, 
how  large  is  it;  how  is  it  operated? 

2.  What  results  has  this  department  been  securing  as  a  whole? 

3.  What  do  you  consider  the  greatest  objection  to  the  employment  of 
membership  solicitors  by  a  commercial  organization? 

4.  What  do  you  consider  the  best  argument  in  favor  of  their  employ- 
ment? 

5.  What  plan  would  you   recommend   that  a   commercial   organization 
should  pursue  in  sustaining  and  increasing  its  membership? 

To  those  secretaries  to  whom  I  sent  copies  of  my  proposed 
paper,  I  asked  that  they  should  state  what  they  considered  the 
weakest  point  in  the  operations  of  the  membership  department 
of  the  Detroit  Board  of  Commerce. 

Our  queries  brought  many  opinions  by  no  means  in  accord 
with  our  own.  Out  of  forty-one  answers,  thirty  never  tried  the 
employment  of  membership  solicitors ;  six,  exclusive  of  Detroit, 
were  using  them  and  were  satisfied  with  the  results ;  two  had 
tried  and  abandoned  the  idea,  one  because  they  felt  that  the 
memberships  so  secured  were  "not  well  sold"  and  the  other 
because  '^a  situation  developed  where  it  was  practically  impos- 
sible to  get  our  own  members  to  solicit  new  members." 

After  considering  all  of  the  replies  very  carefully,  I  had 
come  to  the  conclusion  that  I  could  serve  you  gentlemen  best 
in  the  time  allotted  to  me  if  I  would  devote  it  entirely  to  a  dis- 
cussion of  my  own  paper  in  the  light  of  the  forty-one  letters 
which  I  had  received  on  this  subject  from  brother  secretaries 
in  answer  to  my  five  questions. 

Something  to  Sell 

If  we  should  go  into  a  manufacturing  plant  and  ask  the 
manager  if  he  considered  it  worth  while  to  employ  salesmen,  he 
would  probably  excuse  himself  for  a  minute  and  telephone  for 
a  doctor — or  for  the  police.  A  star  salesman  was  once  asked 
what  he  considered  the  best  asset  of  a  salesman.  His  answer 
was:  "Something  to  sell."  That's  the  question  for  us.  Have 
Ave  anything  to  sell  that  is  worth  selling?  If  we  haven't  then 
our  organizations  are  charitable  institutions  and  our  salaries 
are  gifts.  If  we  have,  then  the  natural  thing  to  do  is  to  sell  it. 
Comparatively  few  business  men  are  in  business  for  their 
health,  and  it  is  likewise  safe  to  assume  that  the  average  com- 
mercial secretary  has  not  chosen  his  vocation  for  recreational 
purposes.  We're  all  after  results;  and  efficiency  is  merely  the 
ability  to  get  them.     The  day  has  gone  by  when  commercial 


METHODS  OF  SUSTAINING  MEMBERSHIPS.  199 

organizations  have  to  defend  their  right  to  exist.  The  commu- 
nity admits  that  we  have  a  contribution  to  make  to  civilization 
— a  service  to  render,  a  product  to  sell.  But  that  doesn't  mean 
that  they  are  all  buying  it.  There's  a  limit  to  what  any  man 
will  buy  of  his  own  accord.  Beyond  that  limit  he's  got  to  be 
sold.  It  doesn't  make  any  dillference  whether  it's  a  bible  or  a 
piano,  there  are  a  lot  of  us  who  will  think  we  can  get  along  with- 
out it — until  we're  shown  we  can  not,  and  sometimes,  in  the 
language  of  the  old  darkey,  "It  takes  a  heap  o'  showin'."  But 
it's  generally  true  that  the  most  precious  stones  are  brought 
to  light  by  hard  digging.  They  aren't  lying  around  on  the 
ground.  Also,  a  miner  wouldn't  think  much  of  going  after 
them  with  a  trowel.    He  wants  a  full-fledged  spade. 

If  we  want  the  solid  good  type  of  men  in  our  organization, 
Ave've  got  to  have  the  best  equipment  we  can  get.  The  miner 
who  is  digging  in  sand  can  get  along  with  a  spade,  but  if  he's 
moving  rocks,  he'll  have  to  take  his  crowbar.  So  must  we  have 
our  equipment  equal  to  any  demand. 

Some  Sales  Arguments 

There  are  rules  and  rules  as  to  what  constitutes  a  sales- 
man, but  Webster's  plain  definition  beats  them  all — "one  who 
sells  goods.'^  As  the  "goods"  vary,  so  must  the  salesman.  The 
commercial  organization  is  turning  out  a  product  which,  though 
not  as  tangible  as  that  of  the  manufacturer,  is  nevertheless  as 
real.  That  product  is  community  service.  The  chief  market  is 
the  membership,  and  as  that  market  expands,  so  expands  the 
usefulness  of  the  organization.  It  requires  a  peculiarly  high 
type  of  salesmanship  to  sell  that  product.  Samples  can  not  be 
carried  along  in  a  gi'ip.  The  membership  solicitors  in  the  De- 
troit Board  of  Commerce  are  not  theoretical  salesmen.  They 
have  all  passed  the  apprenticeship  stage.  Each  day  brings 
some  experience  that  demands  the  utmost  of  their  selling  abil- 
ity. A  while  ago  "A"  went  to  see  Mr.  Brown,  a  local  theater 
manager,  about  his  resignation.  Mr.  Brown's  statement  was: 
"Oh,  I  never  get  around  to  any  of  their  meetings,  or  get  any 
benefit  from  it.  I  haven't  even  been  in  the  building.  It's  no 
use  to  me.  That's  all  there  is  to  it."  Wherupon  "A"  replied: 
"See  here,  Mr.  Brown,  if  a  man  came  to  your  theater  here,  and 
bought  a  ticket  and  went  in  and  sat  down  and  went  to  sleep 
while  the  show  was  going  on,  would  you  give  him  his  money 


200  METHODS  OF  ORGANIZATION  AND  OPERATION. 

back?''  Mr.  Brown  is  still  with  us.  In  another  case,  ^^B''  went 
to  call  on  a  fiery  old  German  who  had  also  resigned.  ^'B" 
stated  his  business,  and  by  actual  time,  the  next  five  minutes 
were  consumed  by  Schmidt  in  consigning  the  Board  of  Com- 
merce, and  all  connected  with  it,  to  a  realm  analogous  to  Sher- 
man's description  of  war.  When  he  paused  for  breath,  the 
salesman  began  to  laugh  and  said  that,  "being  a  Universalist, 
he  wasn't  in  the  least  offended."  Then  he  started  in  on  a  ready- 
made  sales  talk.  When  he  left  the  shop,  he  carried  Schmidt's 
check  for  six  months'  dues  in  advance. 

These  are  but  two  instances.  A  novel  would  not  include 
them  all.  Every  such  case  would  be  lost  by  the  novice.  They 
are  saved  only  by  the  experienced  salesman  who  regards  nega- 
tives and  frowns  as  merely  incentives  to  action.  But  results 
are  not  obtained  without  careful  planning.  A  sales  organiza- 
tion, not  thorough,  is  unworthy  of  the  name.  Our  aim  in  De- 
troit is  to  develop  the  department  to  the  highest  possible  de- 
gree of  efficiency,  and  we  employ  every  available  means  to  this 
end.  Our  staff  is  composed  of  four  men:  three  solicitors,  and 
one  man  to  handle  resignations  and  delinquents.  The  member- 
ship secretary  keeps  a  file  of  "prospects"  upon  which  the  solici- 
tors work.  Staff  meetings  are  held  each  morning,  and  the  day's 
work  carefully  mapped  out.  Reports  are  made  each  night  show- 
ing the  results  per  salesman,  and  every  individual  case  consid- 
ered at  the  next  morning's  staff  meeting.  Before  any  prospect 
is  interviewed,  he  has  received  literature,  and  a  letter,  both  cal- 
culated to  prepare  the  way  for  the  salesman.  The.  resignations 
and  delinquents  are  handled  in  a  similar  way,  and  no  effort 
is  spared  that  can  avail  to  bring  them  back,  in  good  standing, 
to  the  organization. 

Service  Men 

When  a  membership  solicitor  secures  an  application,  he 
ceases  to  be  a  salesman  in  that  particular  case,  and  becomes  a 
"service"  man.  His  duty  to  the  new  member  is  not  completed 
until  that  member  has  entered  into  the  activities  of  the  or- 
ganization. Even  the  arguments  used  in  making  a  sale  are  the 
objects  of  careful  study,  and  are  threshed  out  in  conference. 
For  example,  the  secretary  will  say  to  a  staff  salesman: 
"George,  I  am  a  real  estate  dealer,  with  plenty  of  means,  but 
I  am  'sore'  at  your  organization  because  I  think  you  are  giving 
my  competitors  tips  on  business.    Sell  me."    Then  George  starts 


METHODS  OF  SUSTAINING  MEMBERSHIPS.  201 

in,  with  the  rest  of  the  sales  force  critically  watching.  The 
hardest  arguments  are  used  on  both  sides — and  a  snappy  dis- 
cussion follows. 

Once  a  year  we  plan  a  campaign  in  which  everyone  joins. 
"Teams"  of  members  are  made  up,  and  considerable  publicity 
secured.  The  results  have  been  gratifying,  but  such  a  cam- 
paign can  no  more  replace  the  steady,  consistent  plugging  of 
our  membership  staff  than  a  manufacturer  can  employ  a  fresh 
force  for  the  rush  season  and  lay  off  entirely  for  the  rest  of  the 
year.    The  campaign  is  merely  the  harvesting  season. 

The  final  test  of  this,  or  an}^  other  system  is,  however,  the 
results.  The  theory  is  worth  nothing  if  we  can't  back  it  up. 
The  membership  staff  was  acquired  in  January  of  this  year. 
When  we  asked  the  directors  for  a  trial,  we  promised  them  an 
average  of  seventy-five  members  a  month  for  all  save  the  two 
quiet  vacation  months  of  July  and  August,  when  business  is 
dull. 

The  records  show  that  in  January  we  secured  92  mem- 
bers, and  collected  $647.00  of  delinquent  dues;  in  February, 
98  new  members,  and  |796.00  in  dues  from  delinquents.  Be- 
ginning in  March,  the  staff  did  organization  work  for  the 
campaign,  and  their  services  in  this  connection  were  invalu- 
able. The  campaign  brought  us  725  new  members — 92  more 
came  in  April,  and  60  in  May.  In  June  we  held  our  annual 
cruise,  and  in  this  connection  again,  we  enlisted  the  member- 
ship men  for  organization  work.  But  little  of  their  time  was 
given  to  selling.  Even  at  that,  however,  we  secured  40  new 
members.  July,  one  of  the  discounted  months,  brought  us  50 
more,  and  August,  59. 

The  collections,  also,  were  steadily  improving,  and  in 
August — Avith  business  conditions  as  they  had  been  during  the 
summer — tAvo  men  collected  over  ?6,000.00  of  delinquent  dues. 

But  there  was  another  result.  The  sage  has  said:  "As  a 
man  thinks,  so  is  he."  The  maximum  is  likewise  true  of  an 
organization.  The  enthusiasm  of  the  salesmen  influenced  the 
entire  staff.  The  argument  we  advanced  to  others  kept  clearly 
before  our  minds  what  we  professed  to  be.  Conviction  is  neces- 
SSLTV  to  sell,  and  conviction,  like  enthusiasm,  is  contagious. 


202  METHODS  OF  ORGANIZATION  AND  OPERATION.    . 

Plans  for  Committee  Organization 

We  had  now  formulated  plans  to  establish  a  number  of 
standing  committees  from  our  members  to  Avork  with  the  sales- 
men for  about  two  hours  one  day  a  week.  The  idea  is  to  have 
a  committee  for  every  day  in  the  week.  Mondays,  Bill  and  Tom 
will  go  out  with  the  salesmen  for  about  two  hours.  Tuesdays, 
John  and  James,  etc.  In  this  way  we  expect  not  only  to  in- 
crease our  efficiency  in  the  work,  but  also  by  "reflex  action^' 
to  keep  our  members  interested. 

We  had  eight  months  of  trial  of  our  methods,  and  these 
eight  months  covered  the  "slack"  time  as  well  as  the  rush  sea- 
son. The  membership  st^ff  stands  or  falls  on  a  record  some- 
thing like  this: 

1216  new  members  in  eight  months. 

Over  eight  thousand  dollars  of  delinquent  dues  collected. 

An  increase  in  our  annual  revenue  of  over  $30,000.00,  at  a  total  expendi- 
ture of  less  than  ten. 

An  average  of  eighty  new  members  a  month,  excluding  the  months  of 
July  and  August,  and  also  the  month  of  the  campaign. 

An  average  of  152  new  members  a  month,  and  $1,000.00  per  month  of 
collections,  from  January  to  September. 

The  cancellation  of  about  50  resignations,  and  the  rekindling  of  enthusi- 
asm all  along  the  line  as  the  result  of  analyzing  our  assets. 

A  certain  optician  in  Detroit  has  a  very  pertinent  sign  in  his  window.  It 
reads :  "I  charge  for  examining  the  eyes.  Did  you  ever  get  anything  good  for 
nothing?"  We  believe  that  our  organization  needs  the  best  men  it  can  get 
to  handle  its  membership — the  source  of  both  income  and  influence.  We 
invested  in  them,  and  they,  in  turn,  produced  results  satisfactory  to  us,  in 
proportion  to  the  amount  invested.     *     *     *     * 

Experience  of  Large  Cities 

Following  are  a  few  typical  letters  from  men  who  were 
actually  confronted  by  the  same  problem  that  we  were  con- 
fronted with  in  Detroit,  and  they  were  expending  just  as  much 
time  and  just  as  much  energy  and  substantially  as  much  money 
in  trying  to  find  the  answer  to  the  broader  question  that  we 
were  trying  to  answer  for  ourselves  in  Detroit.  Their  mem- 
bership methods  are  exceedingly  interesting  to  me,  and  I  know 
that  they  will  be  to  you.  Richard  C.  O'Keefe,  the  General 
Secretary  of  the  Buffalo  Chamber  of  Commerce,  writes  a  long 
letter,  the  interesting  part  of  which  is  this : 

"We  have  never  maintained  such  a  force  in  this  organization,  and  I  was 
unprepared  to  reply  intelligently  to  your  various  questions.  It  occurred  to 
me,  however,  that  to  assist  in  determining  the  value  of  your  argument  from 
our  viewpoint,  it  would  be  well  to  give  the  plan  a  try-out,  which  I  did,  and  I 


METHODS  OF  SUSTAINING  MEMBERSHIPS.  203 

am  pleased  to  report  that  in  one  week's  time  three  memibers  of  my  office 
staff  secured  twenty  applications.  Needless  to  say,  I  am  very  much  inclined 
to  continue  the  work,  and  believe  that  we  can  substantially  increase  our 
membersihip  by  this  means. 

"For  the  actual  work  of  each  committeeman  we  have  devised  a  plan 
which  makes  it  absolutely  necessary  on  the  part  of  anyone  participating  to 
do  his  share  of  the  work,  or  indicate  to  every  other  member  of  the  committee 
that  he  has  neglected  it.  "We  have  prepared  a  very  carefully  selected  list  of 
over  3,000  prospects.  These  prospects  are  arranged  on  cards  in  triplicate, 
filed  alphabetically  and  then  submitted.  This  file  of  prospects  is  taken  before 
the  membership  committee  and  read  off  one  after  another. 

"Supposing  that  prospect  1296,  Mr.  W.  J.  Keller,  is  taken  by  Mr.  E.  P. 
White ;  the  card  is  removed  from  the  file  and  handed  complete  to  Mr.  White. 
He  writes  his  name  on  card  number  three  following  the  words  'Taken  by,* 
and  returns  card  number  three  with  card  number  one  to  the  secretary,  keep- 
ing card  number  two.  Card  number  one  is  again  filed  in  the  prospect  file, 
and  card  number  three  signed  with  Mr,  Whitens  name,  indicating  that  he  has 
agreed  to  see  this  prospect,  is  placed  in  another  file  behind  his  name  as  a 
record  that  he  took  the  prospect.  You  will  see  at  once  that  our  file,  having 
been  completed  with  a  great  deal  of  work,  is  not  spoiled  by  giving  it  away. 
You  will  also  see  that  because  of  the  fact  that  the  duplicate  and  record 
cards  have  been  torn  from  card  number  one,  we  know  that  the  prospect  has 
been  taken ;  and  you  will  also  see  that  Mr.  White  has  gone  on  record  as  having 
taken  prospect  1296  and  must  report  upon  it  to  the  chairman.  The  further 
value  of  this  complete  prospect  li^,  record  of  prospects,  and  the  check  upon 
it,  is  that  all  of  the  work  done  by  the  membership  committee  throughout  the 
year  accumulates,  and  is  a  record  and  resource  to  the  chamber  for  future 
membership  committees.  This  prospect  card  is  the  writer's  device,  and  has 
already  proved  its  worth  beyond  question.  For  the  further  assistance  of  the 
membership  committee  in  their  work  we  use  a  little  booklet  briefly  outlining 
the  purpose  and  activities  of  the  chamber  of  commerce,  and  enclose  you 
herewith  a  copy  of  that." 

The  letter  of  Mr.  Hubert  F.  Miller,  the  Business  Manager 
of  the  Chicago  Association  of  Commerce,  was  a  very  interesting 
one: 

"Your  letter  of  the  8th  has  just  been  received.  I  have  not  read  the  en- 
closure, but  will  answer  your  questions  in  the  order  asked,  as  follows: 

"1.  We  maintain  a  membership  sales  force  of  two  regular  employes,  en- 
gaged exclusively  on  membership  solicitation.  We  have  two  other  men  who 
work  on  collections  and  reinstatements  of  resignations,  and  these  two  men 
also  secure  membership  applications,  in  addition  to  their  regular  work.  The 
department  is  conducted  under  the  immediate  supervision  of  the  head  of  the 
accounting  department,  who  is  one  of  the  two  men  who  works  on  collections 
and  reinstatements  and  looks  after  the  detail  of  membership  work  as  well. 
We  also  have  a  stenographer  in  the  office  who  keeps  the  records  and  minutes 
of  the  membership  committee  meetings.  He  is  secretary  to  the  membership 
committee,  but  he  is  not  the  'membership  secretary,'  as  we  have  no  such  office. 
The  management  of  the  membership  work  is  under  the  general  supervision  of 
the  business  manager. 

"2.  The  result  of  this  arrangement  or  department  is  entirely  satisfactory. 
It  is  based  on  several  years  of  experience  and  experimenting,  and  our  records 
show  that  the  two  employes  who  give  their  entire  time  to  soliciting  member- 


204  METHODS  OF  ORGANIZATION  AND  OPERATION. 

ships  secure  almost  as  many  applications  as  all  other  sources  combined.  If 
we  add  the  number  secured  by  other  employes,  the  total  would  be  considerab'y 
in  excess  of  the  number  credited  to  the  membership  committee  and  all  other 
volunteer  effort.  Please  remember  our  membership  committee  is  appointed 
annually  and  its  members  are  chosen  from  our  best  volunteer  workers  in  the 
membership  field.  The  work  of  this  committee  is  supplemented  by  various 
auxiliary  membership  committees.     It  holds  weekly  meetings. 

"The  committee  tries  new  plans  each  year  and  does  a  lot  of  good  work 
and  secures  a  large  number  of  applications.  The  total  from  all  sources  aver- 
ages SCO  to  1,000  a  year.  I  believe,  however,  that  more  than  one-half  of  all 
the  applications  from  year  to  year  are  credited  to  the  paid  solicitors. 

"3,  We  have  tried  plans  similar  to  yours  and  find  them  quite  satisfactory. 
We  try  to  invent  new  schemes  or  plans  annually.  Just  now  we  are  holding 
frequent  meetings  called  membership  conferences.  These  attract  about  fifty 
of  our  best  workers  each  week.  We  have  good  speakers  on  association  topics 
and  usually  have  a  good  dinner  and  some  entertainment.  We  furnish  enough 
of  the  goodfellowship  feeling  and  enthusiasm  to  last  the  men  another  week. 
We  foster  a  spirit  of  friendly  rivalry  by  dividing  the  active  workers  into  two 
bands  or  teams  to  compete  for  leadership.  Formerly  we  had  five  or  six  di- 
visions, but  find  it  works  better  to  have  but  two. 

"Our  membership  solicitors  and  other  membership  employes  attend  all 
meetings  of  the  volunteer  committeemen  and  help  them  a  great  deal  with,  sug- 
gestions. All  of  our  employes  have  been  with  us  several  years  and  are  men 
especially  adapted  to  the  work.  We  have  tried  out  perhaps  fifteen  men  who 
have  failed  to  make  good  although  they  were  splendid  men  of  established 
reputation  as  salesmen  in  other  lines.  It  requires  a  particular  gift  of  per- 
suasion and  diplomacy,  as  well  as  tact  and  business  ability,  to  make  a  good 
membership   salesman. 

"4.  I  see  no  objection  to  employing  solicitors.  I  do  not  believe,  how- 
over,  in  paying  commissions.  We  have  tried  out  that  system  repeatedly  and 
abandoned  it  finally.  I  believe  a  great  many  organizations  throughout  the 
country  are  suffering  now  from  results  of  membership  campaigns  conducted 
on  a  commission  basis.  There  is  always  danger  that  such  memberships  are 
not  "well  sold,"  and,  therefore,  will  not  stay  sold,  and  a  flood  of  resignations 
results  at  the  end  of  the  first  subscription  period. 

"5.  The  best  argument  in  favor  of  paid  solicitors  for  membership  work 
is  in  the  results  obtained.  A  good  membership  man,  well  trained,  with  a 
thorough  mastery  of  the  talking  points  in  favor  of  his  organization,  work- 
ing industriously  and  continuously,  can  outsell  at  least  two  or  three  ordinary 
volunteer  workers.  A  volunteer  worker  has  other  business  to  do;  he  can  not 
concentrate  on  membership  work.  It  is  a  "side  line"  with  him,  and  after 
he  has  worked  all  his  friends  and  acquaintances  he  runs  out  of  material  and 
finds  it  very  hard  to  sell  strangers. 

"In  conclusion,  I  am  thoroughly  convinced  that  salaried  solicitors  are  a 
necessary  part  of  association  work,  especially  in  larger  cities." 

New  York's  Membership  Experiment 
Here  is  a  very  interesting  letter  from  Mr.  S.  Cristv  Mead, 
the  Secretary  of  the  Merchants'  Association  of  New  York,  in 
which  he  says: 

"1.  A  and  B.  When  our  membership  bureau  was  created  last  June  a 
year  ago,  under  the  supervisory  jurisdiction  of  a  small  membership  commit- 


METHODS  OF  SUSTAINING  MEMBERSHIPS.  205 

tee  to  maintain  and  upbuild  the  membership,  the  city  was  divided  into  six 
sections,  each  large  in  area,  and  a  corps  of  six  solicitors  was  selected,  each 
being  assigned  to  a  district  after  being  thoroughly  grounded  in  the  benefits 
flowing  from  commercial  organization  work,  as  well  as  the  association's 
achievements. 

"C.  Each  canvasser  was  given  a  file  of  the  prospects  in  his  district, 
the  membership  committee  having  previously  determined  that  each  was 
eligible  to  membership.  On  a  printed  card,  which  indicates  the  form  of 
the  eligible  membership  file  given  to  each  solicitor,  initial  and  subsequent  calls 
were  noted.  Our  daily  report  form  (of  which  a  copy  is  submitted)  showed 
each  day's  work.  The  canvasser's  cards  and  the  reports  were  carefully  ex- 
amined by  the  manager  of  the  membership  bureau,  who  not  only  discussed 
with  each  solicitor  the  canvass  of  certain  prospects,  but  also  personally  gave 
or  secured  such  assistance  as  could  be  requested  to  promote  early  and  favor- 
able action  on  the  membership  Invitation  extended  by  our  field  representa- 
tive on  behalf  of  either  the  membership  committee,  one  of  our  officers  or 
directors,  or  a  member.  The  entire  field  force  was  frequently  called  together 
in  conference  by  the  bureau  manager,  to  discuss  difficulties  encountered,  to 
review  recent  work,  or  to  be  Instructed  In  detail  on  some  Important  activity 
In  which  the  association  may  have  engaged,  of  vital  Interest  to  a  part  of  or 
the  entire  membership.  These  conferences  are  Instructive  to  the  men,  help 
membership  upbuilding,  and  often  result  In  the  writer  learning,  for  Instance. 
bow  various  Interests  regard  phases  of  our  work,  or  subjects  of  concern  to 
certain  trades  or  Industries,  or  the  names  of  men  particularly  qualified  to 
render  committee  service,  etc.  The  conferences  lasted  from  an  hour  to  an 
hour  and  a  half,  being  held  Saturday  mornings  when,  under  the  conditions 
existing  In  the  city,  canvassing  Is  difficult,  If  not  Impossible. 

'"The  districts  were  so  arranged  that  they  could  be  easily  and  quickly  en- 
larged or  decreased  in  area,  dependent  upon  the  size  of  the  fluctuating  field 
staff. 

"2.  As  a  whole,  the  soliciting  force  secured  excellent  results.  Notwith- 
standing the  heavy  Initial  cost  In  organizing  and  equipping  the  bureau,  the 
first  year's  work  of  the  bureau  showed  a  profit  of  more  than  $7,500.  Our 
directors  approved  the  view  of  our  membership  committee  that  the  work  Is 
profitably  conducted,  even  though  the  cost  of  obtaining  a  new  member  repre- 
sents the  first  year's  dues,  $50,  as  In  the  past  the  average  life  of  membership 
Is  eight  years.  As  a  matter  of  fact,  the  cost  of  securing  new  members  has  been 
about  $25. 

"3. — A.  What  I  would  consider  as  a  weak  point  In  your  method,  namely, 
the  approach  of  the  prospective  member,  will  be  largely  met.  If  not  entirely, 
by  standing  committees  of  your  members  working  with  your  salesmen  for 
about  two  hours  one  day  a  week.  If  any  appreciable  number  of  your  mem- 
bership will  continually  and  systematically  give  such  valuable  service,  yours 
will  be  the  best  plan  of  membership  upbuilding,  for  It  will  combine  the  can- 
vasser's Intimate  knowledge  of  your  activities  and  the  i)ersonal  Interest  and 
Influence  of  a  member  In  extending  a  membership  Invitation.  It  will  make 
certain  an  effective  approach  at  great  economy  of  time  and  under  the  best 
possible  auspices,  for  the  merchant  or  professional  man  will  show  some  ap- 
preciation of  the  compliment  paid  by  the  call  of  one  of  his  number,  even  though 
it  be  only  to  listen  to  the  argument,  and  if  that  opportunity  Is  afforded.  In- 
terest In  the  work  \Nill  be  aroused  sooner  or  later  with  resultant  member- 
ship. Falling  personal  call,  letters  of  Introduction  from  members  for  the  can- 
vassers to  present  to  others  in  the  same  or  other  Industries,  carry  great 


206  METHODS  OF  ORGANIZATION  AND  OPERATION. 

weight,  especially  if  the  latter  highly,  though  briefly,  commends  the  activities 
of  the  organization,  the  benefits  accruing  therefrom  and  urges  membership. 

B.  Would  not  the  efficiency  of  the  salesmen  be  increased  by  the  time 
given  to  collection  of  dues  being  devoted  to  membership  soliciting?  We  have 
one  man,  one  of  our  regular  force,  devoting  his  entire  time  to  collections. 
Although  membership  dues  represent  a  debt  just  as  much  as  that  incurred  in 
buying  merchandise,  at  the  same  time  the  efforts  to  collect  can  only  be  fol- 
lowed up  to  a  certain  point,  and  in  this  work  we  find  other  qualities  than 
those  usually  possessed  by  the  high  class  salesman  are  required. 

The  Membership  Solicitor 

"4.  Th^re  can  be  no  real  valid  objection  to  employing  membership 
solicitors  any  more  than  to  the  merchant  using  salesmen  to  market  his  pro- 
duct, other  than  that  the  task  of  the  first  named  is  the  more  difficult  because 
membership  is  intangible.  Members  might  question  the  policy  of  spending 
large  sums  to  increase  the  enrollment,  but  there  is  no  ground  for  reasonable 
criticism  if  membership  upbuilding  is  self-supporting.  Without  the  aid  of 
members,  however,  membership  canvassing  is  not  productive  of  results  worth 
while  for  the   effort  expended. 

"As  you  so  clearly  state,  the  membership  solicitor  must  be  a  man  of 
intelligence  and  tact,  and  possess  the  highest  degree  of  salesmanship.  Men 
of  that  type  can  earn  more  in  mercantile  pursuits  than  in  our  field,  hence  the 
personnel  of  a  successful  canvassing  force  changes  frequently,  as  the  men 
engaged  therein  come  in  contact  with  better  opportunities.  Such  has  been 
our  experience.  The  cost  of  maintaining  a  membership  field  force  is  high, 
therefore,  as  it  takes  at  least  a  month's  training  before  a  canvasser  can 
effectively  present  membership  and  become  even  passingly  familiar  with  the 
prospects. 

"5.  Commercial  organizations,  especially  those  in  the  large  centers, 
spend  large  sums  in  issuing  literature,  in  publicity  work,  and  in  advertising  in 
one  form  or  another.  While  they  are  absolutely  necessary,  the  paid  mem- 
bership solicitor  is  the  best  possible  means  of  calling  attention  to  the  or- 
ganization's aims  and  achievements,  for  he  comes  in  direct  contact  with  the 
principal — the  i)erson  your  literature  may  or  may  not  reach — and  if  the  field 
representative  is  of  the  right  type,  a  favorable  impression  has  been  given, 
or  a  misconception  concerning  the  organization  has  been  removed,  or  sugges- 
tions have  been  obtained  worth  many  times  the  cost  of  the  canvass,  even  if 
the  solicitor  is  not  successful  in  securing  the  membership. 

"A  paid  soliciting  force  of  necessity  must  become  acquainted  with  a 
large  part  of  the  membership,  and  in  time  nearly  all  the  eligible  members, 
w^ith  the  result  that  such  solicitors  can  be  used  to  great  advantage,  not 
only  in  intensive  campaigns,  but  in  interesting  or  arousing  part  of  the  mem- 
bership on  any  question  of  importance  on  which  quick  action  is  required. 

"In  addition  to  different  form  letters,  'Greater  New  York,'  our  weekly 
publication,  our  Year  Book,  leaflet  'Things  Done,'  the  'Eligible  Membership 
Directory,'  a  circular  quoting  city  offi<»ials  in  praise  of  our  work,  and  a  leaflet 
containing  commendatory  press  comments  on  our  varied  activities,  are  used 
to  good  advantage  in  maintaining  and  increasing  the  membership. 

Membership  Arguments 
As  to  the  work  of  "soliciting"  I  might  say,  gentlemen,  that 
we  have  changed  our  plan  within  the  last  six  weeks,  so  that 


METHODS  OF  SUSTAINING  MEMBElRSHIPS.  207 

the  men  seeking  new  membership  have  nothing  to  do  with 
resignations  or  collections;  we  have  a  separate  staff  to  handle 
that  work — one  man  being  engaged  in  calling  on  delinquents 
and  looking  after  resignations,  and  two  men  devoting  their 
time  exclusiveh^  to  sales  work.  Mr.  Howard  Strong,  the  Sec- 
retary of  the  Minneapolis  Civic  and  Commerce  Association, 
has  this  to  say : 

"It  is  difficult  to  criticise  your  paper  on  the  Detroit  method,  because 
after  all  has  been  said  and  done,  you  'sold  the  goods,'  and  that  is  the  thing 
which  all  of  us  are  seeking.  I  will,  however,  make  a  few  comments  which 
may  be  a  bit  suggestive.  And  j'et  while  we  all  talk  of  'selling  the  goods,'  as 
a  matter  of  fact  the  selling  of  memberships  is  quite  a  different  proposition 
from  the  selling  of  the  average  commercial  product.  It  is  the  business  of  the 
salesman  to  prove  to  the  man  to  whom  he  is  trying  to  sell  that  he  is  going  to 
get  something  tangible  out  of  the  sale  for  himself.  On  the  other  hand,  our 
answer  to  the  man  who  asks:  'What  am  I  going  to  get  out  of  this?'  is:  'If 
you  are  that  sort,  we  don't  want  you  in  the  organization ;  the  question  is : 
'What  can  you  put  into  it  for  your  town?'  Now,  it  is  more  difficult  for  a 
paid  salesman  to  say  to  a  prominent  business  man  a  thing  of  that  kind  than 
it  is  for  another  member  to  say  it.  A  member  can  go  to  a  business'  man  and 
say :  'I  am  giving  my  time  without  cost,  because  I  believe  the  organization  is 
a  good  thing  for  our  town.  I  believe  you  owe  support  to  this  organization  and 
to  the  town,  and  if  you  are  big  and  broadminded  you  will  recognize  that  any- 
thing which  means  the  development  of  our  town  means  a  return  to  us.  It 
is  up  to  you  to  oome  in,  not  for  \vhat  you  can  get  out  of  it,  but  for  what  you 
can  put  in,  and  show  that  you  are  broad  enough  to  recognize  that  your  om\ti 
growth  depends  upon  the  groAvth  of  the  town.'  It  is  very  easy  for  the  business 
man  to  turn  down  a  salesman  whom  he  knows  is  paid  for  what  he  is  doing, 
while  it  is  hard  for  him  to  turn  down  a  member  who  occupies  the  same  rela- 
tion to  the  community  that  he  does,  and  who  is  giving  his  time  because  of  his 
loyalty  to  his  town. 

"It  is  true  that  you  got  1,200  members  in  eight  months,  and  you  had  a  new 
building  with  club  facilities  as  the  strongest  basis  of  appeal.  Your  total  cost 
was  $10,000.  On  the  other  hand,  we  got  700  members  in  less  than  six  months 
at  a  cost  of  something  less  than  $1,000,  and  as  a  byproduct  we  gave  a  very 
considerable  education  in  civic  affairs  to  our  members  who  were  on  our 
membership  committee,  which,  in  my  mind,  is  an  important  consideration. 
Nevertheless,  neither  your  figures  nor  ours  are  conclusive.  The  second,  third 
and  fourth  years,  I  think,  would  tell  the  story  more  completely.  It  is  quite 
possible  that  you  can  keep  on  getting  members  at  a  faster  rate  with  your 
method  than  we  can  with  our  method,  and  I  am  not  at  all  sure  but  that  at 
the  end  of  the  four  years  you  would  show  a  record  ahead  of  ours.  In  other 
words,  it  is  difficult  to  judge  on  one  year's  record  for  either  method.  We 
have  a  new  organization  and  have  not  exhausted  our  field,  therefore,  the 
number  which  we  secured  this  year  is  perhaps  larger  than  the  number  which 
can  be  secured  within  the  next  few  years.  You  have  a  new  club  house,  and 
this  is  a  very  strong  basis  of  appeal.  Neither  of  us  Is  making  a  normal 
appeal.  Three  or  four  lean  years  would  give  a  better  comparison  of  methods 
than  the  comparison  of  a  single  fat  year  under  the  two  methods. 

"My  general  inclination  is  toward  the  joint  plan  which  you  suggest,  that 
is,  the  plan  by  which  you  propose  to  send  out  members  with  your  solicitors. 


208  METHODS  OF  ORGANIZATION  AND  OPERATION. 

This  enables  the  business  man  who  is  a  member  to  put  it  up  to  a  man  who 
is  a  non-member  on  the  basis  of  loyalty  to  his  organization  and  town,  and 
at  the  same  time  it  gives  him  an  opportunity  to  fall  back  upon  the  expert 
salesman  who  knows  the  game  and  who  can  give  an  answer  to  every  con- 
ceivable objection.  I  am  coming  to  the  notion  that  this,  perhaps,  is  the  ulti- 
mate solution. 

"I  agree  with  you  absolutely  in  the  matter  of  delinquents.  Except  in 
unusual  cases,  members  should  not  be  asked  to  call  upon  delinquent  members ; 
that  should  be  left  for  employees  of  the  organization. 

"To  answer  your  questions  specifically : 

"1  and  2.  We  have  two  or  three  men  on  our  staff  who  do  some  member- 
ship solicitation.  These  men,  however,  see  a  very  small  proportion  of  pros- 
pects and  the  work  is  only  incidental  to  the  work  of  the  membership  com- 
mittee. 

"3.  The  weakest  point  in  the  Detroit  plan  is  the  financial  cost  of  secur- 
ing new  members.  This  is  justified,  however,  if  it  can  not  be  done  for  less. 
Another  weakness  may  appear  in  the  course  of  a  few  years  if  it  is  found 
that  the  members  who  were  secured  through  'salesmanship*  do  not  retain 
their  membership,  as  well  as  those  who  are  'sold'  by  members.  This  may 
or  may  not  appear. 

"4.  I  do  not  see  any  specific  objections  to  the  employment  of  member- 
ship solicitors,  provided  they  work  largely  in  conjunction  with  members. 

"5.  The  strongest  argument  in  favor  of  the  plan  is  the  fact  that  you  got 
results,  and  that  you  can  probably  continue  to  get  results,  because  your  so- 
licitors are  absolutely  under  your  control  and  can  keep  at  work  while  mem- 
bers are  attending  to  their  own  business. 

Mr.  Roland  B.  Woodward,  the  Secretary  of  the  Rochester 
Chamber  of  Commerce,  says: 

"First.  We  do  maintain  a  membership  secretary.  He  has  no  assistants 
except  what  would  be  given  to  hira  in  an  organization  like  this  at  a  time 
when  a  campaign  is  on.  He  is  backed  by  a  strong  committee,  the  members  of 
which  he  is  supposed  to  get  to  work  to  aid  him  in  every  possible  way. 

"Second.  Up  to  date,  this  -work  has  not  been  satisfactory  except  in  the 
campaigns  that  have  been  put  on  where  the  whole  energies  of  the  chamber 
have  been  turned  to  that  end. 

"Third.  The  danger  of  your  program  and  policy  is  that  it  may  after  a 
time  lead  the  membership  to  believe  that  they  are  not  actively  to  do  that  work 
which  is  being  so  competently  done  by  a  staff  of  employes. 

"Fourth.  The  greatest  objection  to  membership  solicitors  is  that  they  are 
likely  to  affect  adversely  the  strong  feeling  of  volunteer  service,  which  is  the 
best  quality  of  many  of  our  chambers. 

"Fifth.  The  very  best  argument  in  favor  of  membership  solicitors  is  that 
they  give  direction  to  and  train  the  general  membership  to  efficient  selling. 

"Your  program  has  gone  on  so  successfully  that  you  must  not  be  misled 
by  its  success  and  eliminate  the  many  strong  factors  which  your  organization 
had  at  its  service,  namely,  the  inspiration  of  a  new  building,  the  best  in  the 
country ;  the  inspiration  of  great  industrial  and  mercantile  growth  in  the  city, 
and  the  combination  of  forces  that  had  not  hitherto  worked  together." 

Mr.  Munson  Havens,  the  Secretary  of  the  Cleveland  Cham- 
ber of  Commerce,  savs : — 


METHODS  OF  SUSTAINING  ME51BERSHIPS.  209 

"Were  you  to  ask  me,  however,  for  a  categorical  answer  to  the  question, 
*Is  the  employment  of  solicitors  practical?'  I  would  hesitate.  I  believe  there 
is  nc  department  of  an  organization  more  governed  by  conditions  peculiar  to 
it  than  that  of  membership,  and  incidentally,  few  chambers  give  the  matter 
the  consideration  it,  the  'business'  side,  should  have. 

"i  or  small  organizations  I  am  opposed  to  the  employment  of  solicitors,  on 
the  ground  that  the  smaller  the  community  the  wider  the  personal  acquain- 
tance of  the  organization  members  and  the  better  the  esprit  de  corps  obtainable 
tJirouj;h  membership  work  by  them  rather  than  paid  solicitors.  The  i)oint  of 
cost  is  also  important  with  small  chambers,  as  the  number  of  new  member.-* 
i:^ach  year  is  necessarily  limited  by  the  size  of  the  city.  The  number,  secured 
by  solicitors,  who  could  not  otherwise  be  reached,  would  be  too  small  to  offset 
the  expense  of  the  soliciting  department. 

"I  have  that  same  opposition,  though  in  a  less  degree,  to  the  employment 
of  solicitors  by  larger  chambers.  There  must  necessarily  be  a  lessening  of 
interest  in  the  actual  campaign  for  new  members  when  that  campaign  Is  car- 
ried on  by  other  than  the  membership  itself,  and  sooner  or  later,  perhaps  when 
your  solicitors  have  thoroughly  canvassed  the  city,  the  loss  of  that  feeling  of 
personal  responsibility  may  be  felt.  Perhaps  I  am  much  too  conservative. 
Certainly  there  are  at  once  two  classes  of  chambers  where  solicitors  may  rea- 
sonably be  employed,  one,  for  example,  the  Merchants'  Association  of  New 
York,  where  the  size  of  the  city  puts  a  premium  on  the  securing  of  members 
through  personal  acquaintance,  and  the  other,  chambers  so  long  In  existence 
that  the  city  has  been  canvassed  and  recanvassed  by  the  members  themselves 
until  the  demand  upon  their  time  for  such  work  Is  too  great  to  be  expected. 

"Yet,  as  opposed  to  this  latter  situation,  we  have  the  example  of  Boston, 
where  an  enthusiastic  membership  committee  has  developed  a  new  plan  of 
a  small  central  unit,  each  member  of  which  attempts  not  only  to  secure  new 
members  by  the  regular  methods  of  personal  solicitation,  but  also  to  Interest 
a  'sales  force'  of  other  members  working  for  him  (a  plan  which  promises 
excellent  results),  and  where  no  paid  solicitors  are  employed. 

'But  what  actually  counts  are  results,  and  your  corps  of  solicitors  seem& 
to  be  producing  them.  Besides  your  statement  of  a  $30,000  annual  income 
s-ecured  at  a  cost  of  $10,000,  and  In  addition  a  lessening  of  loss  through 
delinquent  collections,  theoretical  arguments  fall  flat.  Even  though  you  were 
to  accept  the  theory  of  x)osslble  danger  In  such  a  method  over  a  longer  period 
than  you  have  employed  It,  your  Income  would  have  been  materially  benefitod 
through  Its  adoption. 

••pJven  considering  that  It  is  necessary  to  secure  only  four  hundred  mem- 
bers by  our  method  to  equal,  in  net  Income  to  the  chamber  one  thousand 
secured  by  yours,  and  with  the  probability  that  your  yearly  total  will  in 
another  j'ear  fall  to  that,  there  is  left  the  gain  through  withdrawn  resigna- 
tions, through  delinquent  collections,  and  through  the  psychological  factoi-  of 
an  annual  addition  of  one  thousand  names  to  the  roster.  The  results  of  your 
eight  months'  work  present  a  very  strong  argument  for  the  employment  of 
paid  solicitors. 

"There  is  one  other  point  which  occurs  to  me,  namely,  the  personality  of 
the  solicitors  themselves.  I  can  see  where  many  attempts  to  Increase  mem- 
l)ershlp  would  not  only  be  fruitless  In  themselves,  but  would  react  against  the 
organization  because  of  the  short-sighted  economy  of  securing  Inexperienced 
and  low-salaried  salesmen. 

"I  think  I  have  answered  In  a  general  way  all  of  your  questions,  but  for 
convenience  will  give  them  In  order: 


210  METHODS  OF  ORGANIZATION  AND  OPERATION. 

"1.  The  Cleveland  Chamber  does  not  employ  paid  solicitors.  There  is 
appointed  annually  a  committee  on  membership  admission,  25  to  35  members. 
One  of  the  assistant  secretaries  gives  about  one-third  of  his  time  to  member- 
ship work. 

"2.  Our  method  is  moderately  successful.  Frankly,  the  chamber  has 
reached  a  point  where  an  increase  in  the  annual  number  of  new  members  is 
necessary,  but  it  is  my  belief  that  the  membership  committee  will  decide  to 
adapt  the  Boston  system  to  our  use  rathar  than  to  employ  solicitors. 

"3.  With  your  records  of  results  it  is  hard  to  point  to  a  weakness  in 
the  method.  I  have  outlined  my  feelings  regarding  the  method  in  general. 
In  your  case  at  least  objection  would  have  to  be  theoretical. 

"4.  The  two  greatest  objections  to  the  employment  of  solicitors  are,  to 
my  mind,  the  loss  of  a  feeling  of  personal  responsibility  on  the  part  of  the 
membership  for  the  growth  of  the  chamber,  and  the  very  great  difficulty  of 
securing  solicitors  who  satisfactorily  combine  personality  and  efficiency. 

The  next  letter  is  from  Mr.  James  A.  McKibben,  the  Sec- 
retary of  the  Boston  Chamber  of  Commerce.  Mr.  McKibben 
says: 

"1.  Our  plan  seems  to  us  to  have  been  pretty  successful,  inasmuch  as  it 
has  succeeded  in  building  the  membership  of  the  chamber  up  from  2.693  in 
1909  to  4.617,  the  present  membership  of  the  chamber.  In  fact,  it  would  be 
entirely  fair  to  say  that  it  had  succeeded  in  building  up  the  membership  from 
1,464  to  4,617,  because  at  the  time  when  our  committee  on  membership  started 
on  the  work  the  combined  membership  of  the  Merchants'  Association  and  of 
the  former  Chamber  of  Commerce  (which  was  consolidated  in  1909)  was  only 
1,464. 

"3,  4,  5.  Every  chamber  or  board  of  commerce  has  in  its  membership 
men  who  are  more  efficient  salesmen,  both  because  of  greater  ability  as  sales- 
men and  because  they  make  the  approach  from  a  very  much  better  angle  than 
any  membership  salesman  you  can  hire  at  a  salary.  It  ought  to  be  possible 
to  utilize  this  resource  of  the  chamber,  and  not  resort  to  paid  solicitors.  Be- 
sides, human  nature  is  human  nature,  and  it  is  never  eliminated  in  a  member- 
ship salesman  or  anybody  else.  If  a  man  is  selling  books  or  goods  or  member- 
ship in  an  organization  he  would  not  be  human  if  he  did  not  strain  a  point  to 
get  results.  If  he  does  this  by  representations,  which  the  organization  would, 
if  it  knew  all  about  them,  perhaps  not  be  quite  willing  to  stand  back  of — and 
the  paid  membership  solicitor  is  pretty  likely  to  do  this  to  some  extent — the 
result  is  inevitable.  You  have  a  disgruntled,  dissatisfied  member  whose  only 
asset  to  the  chamber  is  the  annual  dues  which  he  pays,  and  you  are  likely  not 
to  continue  getting  that  many  years. 

"We  have  recognized  that  danger  in  the  work  in  Detroit,  and  not  less  fre- 
quently than  twice  a  month,  we  invite  all  the  new  m^nbers  to  a  luncheon 
conference,  at  which  time  the  secretary,  or  some  member  of  the  chamber 
meets  with  them  and  tells  them  frankly  just  what  we  expect  of  them  as  new 
members,  and  what  the  work  of  the  organization  is,  as  well  as  what  the  work- 
ing organization  of  the  new  members  is  expected  to  be. 

"If,  on  the  other  hand,  he  is  able  to  induce  a  man  to  join  by  his  magne- 
tism and  his  skill  in  presenting  the  case,  that  is  pretty  sure  to  be  a  temporary 
state  of  mind  on  the  part  of  the  man.  And  beyond  all  this,  is  not  a  man  much 
more  likely,  with  the  presentation  of  the  same  arguments  and  facts,  to  agree 
to  become  a  member  of  an  organization  if  these  arguments  and  facts  are  pre- 
sented by  a  member  of  the  organization  who  is  giving  his  time  purely  as  a 


METHODS  OF  SUSTAINING  AlEJIBERSHIPS.  211 

matter  of  public  spirit  than  if  they  were  presented  by  a  man  whom  the  man 
knows  is  paid  to  do  so?  And  is  he  not  much  more  lil^ely  to  remain  longer  as  a 
member  of  the  organization? 

"Our  experience  with  membership  committees  has  shown  us  that  very 
frequently  there  is  some  weakness  in  their  method  of  ai)proach,  because  the 
membership  committee  goes  out,  and  many  of  them  do  not  present  the  argu- 
ment at  all.  They  merely  say :  "I  say  that  the  chamber  of  commerce  is  a  good 
thing;  now,  take  my  word  for  it;  sign  your  name  on  the  dotted  line,  right 
there."  "And  they  get  the  signature  on  the  dotted  line  and  away  they  go.  Our 
experience  is  that  our  new  members  are  better  sold,  and  the  proposition  is 
explained  more  fully  to  a  larger  percentage  of  the  new  members  secured  by 
solicitors  than  is  our  chamber  of  commerce  work  explained  by  volunteer 
workers,  going  out  as  committees,  although  I  don't  for  a  minute  want  to  be- 
little the  work  of  membership  committees. 

"I  congratulate  you  on  the  attractive  statement  of  the  case  for  the  paid 
solicitor  which  you  have  made.  It  is  interesting  to  note,  however,  that  the 
cost  of  the  'increase  in  annual  revenues  to  over  $30,000  was  about  $10,000.' 
In  other  words,  the  paid  solicitors  did  business  at  a  cost  of  33  per  cent  of 
the  gross  receipts." 

Minimum  Results — Maximum  Cost 
I  Avas  only  too  glad  to  get  a  "rise"  on  that  figure,  because 
we  purposely  put  the  figure  high.  We  have  stated  minimum 
results,  so  far  as  new  members  were  concerned,  and  maximum 
cost,  so  far  as  expense  w^as  concerned,  and  we  didn't  take  into 
account  that  the  $30,000  of  new  revenue  was  new  revenue  from 
dues  only.  We  have  an  entrance  fee  in  the  Detroit  Board  of 
Commerce  of  $25.00,  and  each  one  of  the  1,200  new  members 
secured  since  the  first  of  January  has  been  called  upon  to  pay 
that  125.00  entrance  fee,  and  the  dues  besides,  and  we  figured 
our  cost  on  the  percentage  which  it  bears  to  the  entrance  fee. 

This  is  what  Mr.  Will  L.  Finch,  the  editor  of  "Town  De- 
velopment,'' says: — 

"Taking  up  your  questions  seriatim,  and  answeripg  without  very  mature 
consideration.  I  should  say  that  I  see  no  points  in  the  method  employed  by 
the  Detroit  Board  of  Commerce  that  could  be  classed  as  weak.  Your  most 
difficult  task  will  be  to  get  a  sufficient  continuity  of  service  from  your  com- 
mittees who  are  to  go  out  with  the  solicitors  to  make  it  as  efficient  in  practice 
as  you  would  wish. 

"Your  second  difficulty  is  to  have  these  committees  taken  seriously. 

"I  have  never  been  able  to  see  any  objection  to  employing  membership 
solicitors  by  organizations  having  a  sufficient  membership,  sufficient  funds 
and  sufficient  efficiency  to  make  a  membership  in  the  organization  a  salable 
quantity. 

"Third.  The  argument  in  favor  of  their  employment  is  first  that  a  secre- 
tary should  not  be  permitted  to  solicit  memberships,  because  he  is  paid  for 
doing  a  more  important  work.  What  is  everybody's  business  is  nobody's  busi- 
ness, applies  to  this  as  well  as  to  every  other  human  endeavor.     A  member- 


212  METHODS  OF  ORGANIZATION  AND  OPERATION. 

ship  solicitor  has  a  specific  work  to  perform,  and  will  give  his  entire  time 
and  thought  to  the  work. 

"Fourth.  In  this  question  you  have  stated  the  crux  of  the  whole  mem- 
bership question.  It  is  not  likely  that  so  long  as  the  members  of  a  commer- 
cial organization  are  human  that  that  organization  will  ever  sustain  an  in- 
creased membership  year  in  and  year  out.  Too  much  depends  upon  the  per- 
sonnel of  the  adminis'tration  forces  of  the  organization,  and  too  much  de- 
pends uix>n  the  inclination  of  men  to  be  apathetic  about  everything  except 
their  business. 

"No  artificial  means,  even  the  employment  of  solicitors  or  the  constant 
work  of  the  membership  committee  will  ever  sustain  the  membership  of  an 
organization  unless  that  organization  is  actually  doing  things  and  unless  the 
membership  is  first  made  and  then  kept  sufficiently  appreciative,  first,  of  the 
need  of  an  organization,  and  second,  of  the  necessity  of  the  individual  mem- 
ber giving  of  his  time  and  service  to  the  work  of  the  organization. 

"Inasmuch  as  I  have  been  thinking  and  working  for  the  last  fourteen 
years  on  the  questions  you  have  raised,  I  feel  that  any  reply  I  could  make  to 
your  inquiries  in  the  confines  of  a  letter  must  be  woefully  inadequate.  It 
is  a  tremendously  big  subject,  and  in  fact  is  the  very  essence  of  commer- 
cial organization  life." 

Lucius  E.  Wilson,  of  the  American  City  Bureau  of  New 
York  City,  says: 

"After  reading  your  statement  there  can  be  but  one  answer  to  the  ques- 
tion— so  far  as  it  applies  to  the  Detroit  Board  of  Commerce.  Facts  indicate 
that  the  employment  of  solicitors  has  been  successful.  However,  the  plan  is 
not  safe  for  adoption  in  all  cities.  The  Detroit  Board  of  Commerce  is  an  old, 
well  established,  respected  organization  with  a  magnificent  club  house.  It  has 
established  "something"  to  sell  to  prospective  members.  Its  position  is  al- 
most unique  among  commercial  bodies.  I  can  not  recall  another  commercial 
organization  in  the  United  States  that  possesses  the  same  combination  of 
civic  activity,  plus  complete  club  accommodations.  This  is  a  sort  of  answer 
to  question  number  one  in  your  letter. 

"Question  number  two  says:  'What  do  you  consider  the  greatest  ob- 
jection to  employing  membership  solicitors?'  The  fundamental  trouble  with 
the  plan  is  this:  'The  solicitor  does  not  have  back  of  himself  the  tjremen- 
dous  influence  of  an  aroused  enthusiastic  public  opinion  focused  upon  board 
of  commerce  enlargement  during  a  specified  time.  In  other  words,  the  em- 
ployment of  membership  solicitors  who  peg  away  throughout  the  year  can  not 
produce  the  results  that  are  obtainable  by  a  well -organized  membership 
campaign.  In  your  owm  case,  seven  hundred  and  twenty-five  members  came 
into  the  organization  during  the  month  of  March.  The  warmth,  enthusiasm 
and  encouragement  generated  in  that  campaign  disseminated  itself  through 
the  business  puhlic  of  the  city.  It  made  boosters  for  the  board  of  commerce. 
It  put  the  organization  definitely  and  persistently  in  the  public  eye.  It  laid 
the  foundation  for  the  success  of  your  membership  solicitors.'  Another  diffi- 
culty to  overcome  in  the  use  of  membership  solicitors  Is  the  human  problem 
of  finding  the  right  sort  of  men.  I  personally  think  the  field  representative 
of  an  organization  like  the  board  of  commerce  ought  to  be  a  highly  trained 
man,  competent  to  impress  his  personality  on  the  biggest  business  men  in  the 
city.'  Such  men  are  scarce  and  high  priced.  I  don't  believe  that  the  produc- 
tion of  a  certain  number  of  new  membership  applications  is  in  itself  a  suffi- 
cient justification  of  the  employment  of  a  solicitor.     I  would  want  to  know 


METHODS  OF  SUSTATNING  METVIBERSHIPS.  213 

just  the  impression  he  left  among  the  men  whom  he  failed  to  sign  as  well  as 
among  those  he  landed. 

"Question  number  three  asks :  'What  do  you  consider  the  best  argument 
in  favor  of  their  employment?'  Their  use  as  collateral  to  the  general  re- 
habilitation campaign  is  the  best  argument  for  them.  In  a  city  of  the  size  of 
Detroit  it  is  always  necessary  to  have  some  man  or  men  as  membership 
secretaries  who  will  adjust  threatened  resignations  and  other  misunder- 
standings with  members. 

"The  fourth  question,  'What  plan  would  you  suggest  that  a  commercial 
organization  should  pursue  in  sustaining  and  increasing  its  membership  year 
in  and  year  out?'  demands  a  book  on  the  subject  of  managing  chambers  of 
commerce.  From  me  it  would  bring  forth  a  'dream'  that  I  am  entertaining. 
Some  day  it  is  going  to  be  realized.  It  will  be  a  chamber  of  commerce  that 
will  so  completely  serve  the  needs  of  the  community  that  normal-minded  men 
will  support  it  as  naturally  as  they  do  their  own  families.  To  that  end  cham- 
bers of  commerce  must  (a)  At  regular  intervals  make  big  plans  that  will  re- 
quire the  cooperation  of  the  whole  city. 

"(b) — ^Through  a  medium  of  a  well-organized  campaign  focus  the  city's 
attention  upon  one  plan  in  such  a  way  that  it  will  lead  to  accomplishments. 

"(c) — ^Not  depend  upon  the  secretary  and  his  assistants  to  perform  ex; 
traordinary  or  unusual  tasks,  but  to  employ  expert  outside  assistance  to  carry 
through  big  movements  like  charter  reform,  charitable  and  philanthropic 
movements  in  connection  with  the  business  public,  industrial  or  commercial 
surveys,  municipal  research,  city  planning  movements,  vocational  education, 
together  with  the  articulation  of  the  employer  and  the  employe,  etc.  The 
secretary  would,  under  this  arrangement,  be  the  administrative  head  of  the 
great  organization  that  would  determine  the  order  in  which  large  public  move- 
ments would  be  presented  to  the  city.  He  would  tell  whether  municipal  re- 
search should  precede  an  attempt  at  charter  reform,  etc.  He  would  dictate 
the  order  of  community  procedure.  In  short,  he  would  be  a  man  of  supreme 
influence  in  the  community  instead  of  being  a  clerk.  When  this  conception 
of  community  leadership  finds  its  way  into  the  minds  of  secretaries  and  di- 
rectors of  chambers  of  commerce,  they  will  have  advanced  to  a  point  where 
they  can  justly  claim  that  the  management  of  a  commercial  organization  is  a 
profession  and  a  science. 

C.  S.  Whittier,  Membership  Secretary  of  the  Boston  Cham- 
ber of  Commerce,  says :- — 

"All  of  our  bills  go  out  on  January  1,  so  that  is  the  natural  starting 
time  for  the  new  committee.  It  has  been  the  usual  custom  to  begin  with  a 
small  number  of  men,  some  of  whom  are  brought  over  from  the  committee  of 
the  year  before,  and  the  first  few  meetings  are  intended  to  be  almost  wholly 
of  an  educational  nature.  Some  of  the  officers  or  directors  meet  with  the 
committee,  tell  them  what  the  chamber  has  done  in  the  past  year  or  two, 
why  it  took  such  and  such  a  stand  on  imx)ortant  matters,  and  answer  all 
questions  which  occur  to  the  new  members.  This  is  continued  frequently 
throughout  the  year. 

"Furthermore,  I  have  plotted  curves,  showing  the  progress  of  our  mem- 
bership work  since  1909,  the  comparative  number  of  new  members,  compara- 
tive number  of  resignations  each  year,  etc.  All  of  this  preliminary  work  is 
just  what  you  would  do  if  you  were  in  the  manufacturing  busine^  and  were 
putting  a  new  crew  of  salesmen  on  the  road.  You  probably  would  take  them 
to  the  factory,  show  them  just  how  the  product  is  made,  just  why  certain 


214  METHODS  OF  ORGANIZATION  AND  OPERATION. 

policies  have  "been  adopted,  tell  them  how  much  business  you  must  do  in  a 
year,  and  give  them  each  their  quota. 

"A  word  or  two  about  the  committee  itself.  We  have  been  very  careful  in 
the  selection  of  the  chairman.  We  have  had  the  cashier  of  one  of  the  largest 
banks  in  New  England,  the  vice-president  of  one  of  our  large  public  service 
corporations;  a  very  prominent  lawyer;  two  prominent  insurance  men,  who 
were  great  personal  producers,  and  the  sales  manager  of  the  second  largest 
bakers'  supply  house  in  the  United  States.  Each  of  these  chairmen  has  been 
a  most  excellent  salesman  himself  and  has  been  able  to  'drive'  the  other  mem- 
bers of  the  committee,  who  also  have  been  salesmen,  primarily. 

"There  are  three  things  which  the  committee  can  do.  First,  get  new 
members ;  second,  bring  back  members  who  have  resigned ;  third,  in  a  very 
quiet  and  careful  way  help  the  membership  secretary  in  collecting  unpaid 
dues.  The  including  of  these  last  two  functions  in  a  statement  of  a  member- 
ship committee's  w^ork  may,  of  course,  be  open  to  argument  Often  the  best 
salesman  loses  his  enthusiasm  when  he  is  continually  running  up  against 
'grouches'  and  dissatisfied  customers.  Therefore,  we  have  been  careful  not 
to  ask  some  members  of  the  committee  to  handle  resignations.  We  have  to 
be  still  more  careful  in  the  case  of  unpaid  dues.  Only  where  a  committeeman 
tnows  the  delinquent  very  well  and  would  have  more  influence  with  him  do 
we  ever  ask  his  help. 

"An  effort  is  made  to  keep  the  committee  stirred  up  by  contests  among 
themselves,  and  new  additions  are  made  throughout  the  first  year  as  new 
members  develop  an  interest  in  the  membership  work,  so  that  when  fall  comes 
we  have  a  fairly  large  committee,  all  of  whom  are  well  grounded  in  the  prin- 
ciples and  work  of  the  chamber  and  ready  for  a  quiet  and  persistent  extra 
spirit  at  the  end  of  its  year's  work.  For  this  the  secretary  has  prepared  the 
usual  prospect  list,  while  the  committee  has  suggested  and  planned  the  neces- 
sary literature  and  follow-up  letters. 

"It  has  always  seemed  to  us  that  where  such  a  committee  was  in  the  field 
the  secretary  should  do  as  little  personal  solicitation  as  possible.  If  a  good 
prospect  is  turned  in  it  is  very  easy  to  find  someone  who  knows  him  or  whose 
place  of  business  is  near  him.  This  prospect  feels  that  the  chamber  has  a 
greater  personal  interest  in  him  if  a  member  gives  up  his  time  to  talk  things 
over  with  him.  In  the  case  of  resignations,  however,  the  secretary  oftentimes 
is  in  a  better  position  to  look  up  the  trouble  or  to  present  different  jwints  of 
view  to  the  resigning  member,  and  in  the  case  of  unpaid  dues,  takes  almost 
complete  charge  of  the  work  with  the  assistance  of  the  cashier  in  the  treas- 
urer's office.  Speaking  in  general  terms,  our  resignations  are  handled  by  the 
committee  and  Secretary  jointly,  and  the  unpaid  dues  almost  entirely  by  the 
Secretary. 

James  Reilly,  Secretary  of  the  Newark,  New  Jersey,  Board 
of  Trade,  objects  to  the  employment  of  membership  solicitors 
on  the  ground  that  it  has  a  tendency  to  take  away  from  the 
prestige  and  commercialize  the  value  of  membership  and  im- 
pairs the  standard  of  a  commercial  organization.    He  states : 

"Our  board  of  directors  maintain  a  standard  by  restricting  membership 
so  that  when  a  man  is  invited  to  become  a  member  he  feels  that  an  honor 
has  been  conferred." 

That  sounds  like  a  "silk  stocking"  organization.     Mr.  C. 


METHODS  OF  SUSTAINING  MEMBERSHIPS.  215 

R.  Green,  of  the  Ilamilton,  Ohio,  Chamber  of  Commerce,  be- 
lieved that  new  members  should  be  secured  through  the  work 
of  the  membership  committee,  working  once  or  twice  a  year 
in  short,  snappy  campaigns. 

Through  an  experience  of  several  campaigns  conducted  in 
Binghamton  and  Detroit,  I  found  that  when  the  campaign  was 
over  there  were  a  great  many  business  men  who  had  been 
called  on  by  the  membership  committee,  and  while  these  men 
were  in  a  favorable  frame  of  mind  towards  the  chamber  of 
commerce  they  did  not  sign  applications.  I  never  found  a 
membership  committee  that  was  willing  to  take  care  of  this 
follow-up  Avork  after  the  close  of  the  campaign,  and  it  is  my 
experience  that  some  paid  member  of  the  staff  of  a  commercial 
organization  should  be  definitely  assigned  to  the  work  of  fol- 
lowing up  the  w^ork  of  the  campaign  committee  that  was  left 
only  half  finished. 

Mr.  F.  G.  Morley,  Secretary  of  the  Toronto  Board  of  Trade, 
answering  the  question  as  to  the  best  method  of  sustaining 
and  increasing  membership,  writes : 

"I  know  of  no  better  plan  of  sustaining  and  increasing  the  membership 
than  the  one  you  have  adopted  in  Detroit,  viz.,  giving  members  semi-club 
■privileges.  This  board  has  adopted  the  plan  and  we  hope  to  get  into  our 
new  quarters  by  January  1.  I  might  add  that  since  our  intentions  were 
announced  new  applications  to  the  number  of  150  have  been  sent  in  prac- 
tically unsolicited,  and  I  feel  sure  that  when  our  membership  committee 
opens  a  short  campaign  in  November  we  will  likely  get  more  members  than 
we  require  and  open  a  waiting  list." 

J.  Will  Kell}^,  Secretary  of  the  Commercial  Club  of  Topeka, 
Kansas,  makes  a  criticism  on  the  employment  of  membership 
solicitors  that  represents  the  views  of  many  of  those  who  wrote 
letters  in  answer  to  my  baby  "questionaire." 

"The  greatest  objection  that  I  feel  could  be  offered  against  it,  is  the 
fact  that  i>eople  would  be  inclined  to  say  that  your  soliciting  committee  or 
soliciting  secretary  was  working  entirely  for  his  salary  and  that  about  all 
the  commercial  club  was  doing  was  raising  money  to  pay  its  officers.  This 
objection,  I  know,  is  offered  against  a  secretary  who  makes  any  personal 
efforts  to  collect  dues." 

For  several  years  I  entertained  the  same  feeling,  but  I 
never  yet  have  had  any  experience  to  justify  the  feeling.  I 
have  talked  personally  wdth  many  of  the  new^  members  secured 
by  our  solicitors.  I  have  talked  confidentially  wdth  them,  try- 
ing to  secure  criticism  from  them  in  regard  to  the  method  em- 
ployed.   I  have  also  had  men  follow  up  and  call  upon  some  of 


216  METHODS  OF  ORGANIZATION  AND  OPERATION. 

the  prospects  against  whom  unfavorable  reports  had  been 
turned  in  by  our  solicitors,  and  ever}^  man  has  looked  upon  our 
solicitors  with  the  same  respect  that  he  would  receive  and  listen 
to  and  give  an  order  to  the  credited  salesmen  and  representa- 
tives of  any  commercial  organization  approaching  him  with 
some  article  for  sale.  In  Detroit,  at  least,  I  am  absolutely  satis- 
fied that  the  business  men  look  upon  the  emploj^ment  of  mem^ 
bership  solicitors  as  a  perfectly  logical  thing  for  the  Detroit 
Board  of  Commerce  to  have. 

All  of  our  bu.^iness  men  recognize  that  it  costs  something 
to  secure  business,  and  they  recognize  that  it  will  necessarily 
cost  the  Detroit  Board  of  Commerce  something  to  secure  new 
members. 

Particularly  in  the  smaller  communities  I  believe  that  the 
secretary  who  is  master  of  his  job  gives  more  to  the  community 
than  he  is  paid,  and  that  no  man  need  be  ashamed,  apologize, 
or  be  over-conscious  in  his  dealings  with  members  because  of  the 
fact  that  he  is  on  the  payroll  of  a  commercial  organization. 

A  great  many  secretaries  will  sympathize  with  Mr.  F.  N. 
Yorston,  Secretary  of  the  New  Brunswick,  N.  J.,  Board  of 
Trade,  who  says : 

"Will  answer  your  first  four  questions  bj^  stating  that  we  do  not  maintain 
any  membership  solicitors  outside  of  the  membership  committee,  which  com- 
mittee has  never  been  of  any  real  value  along  these  lines." 

Mr.  Thorndike  Deland,  the  Secretary  of  the  Denver  Cham- 
ber of  Commerce,  makes  a  significant  comment,  saying: 

"I  am  in  favor  of  the  employment  of  men  on  the  staff  of  a  commercial 
organization  to  look  after  the  membership,  as  this  is  just  as  necessary  as  a 
sales  force  in  connection  with  any  business  establishment  and  the  chamber 
of  commerce  should  be  the  model  institution  of  the  city." 

E.  M.  Clendening,  the  General  Secretary  of  the  Kansas 
City  Commercial  Club,  writes  that  not  long  ago  he  made  a 
strong  recommendation  to  his  directors  for  the  employment  of 
a  membership  clerk  at  a  regular  salary,  not  for  the  purpose  of 
doing  away  with  the  membership  committee,  but  to  utilize  him 
in  certain  office  Avork  connected  with  membership.  He  desired 
a  man  of  good  address  so  that  he  could  be  sent  out  to  visit 
concerns  when  the}'  located  and  thus  pave  the  way  for  the  mem- 
bership committee.  He  states  that  he  has  been  successful  in 
having  his  recommendation  adopted.  He  believes  that  in  cities 
of  over  150,000  commercial  organizations  could  well  afford  to 


METHODS  OF  SUSTAINING  MEArBERSHIPS.  217 

employ  one,  and  perhaps  more,  membership  clerks  who  could  be 
made  use  of  in  a  good  many  ways. 

I  like  the  idea  of  II.  L.  Lewis,  the  General  Secretary  of  the 
Indianapolis  Chamber  of  Commerce,  who  suggests  the  follow- 
ing as  the  best  plan  for  sustaining  and  increasing  the  member- 
ship of  a  commercial  organization.    He  says: 

"I  can  hardly  recommend  any  plan  for  keeping  and  increasing  the  mem- 
bership of  a  commercial  organization  that  will  make  a  membership  solicitor 
of  every  member  of  the  organization.  With  every  member  in  the  roll  of  a 
solicitor,  satisfactory  results  are  sure  to  follow." 

On  this  subject  Daniel  Casey,  the  Secretary  of  the  Haver- 
hill, Mass.,  Board  of  Trade,  says: 

"Moses,  Methuselah  and  Napoleon,  with  Caesar  and  Cleopatra  thrown  in 
for  good  weight,  do  not,  I  will  bet  a  half  shilling,  know  that  is  the  best  plan 
for   sustaining   and   increasing   membership." 

Mr.  Casey  clinches  the  argument  in  favor  of  membership 
solicitors  with  the  following: 

"You  are  probably  aw^are  that  some  organizations  are  criticised  because 
they  devote  considerable  time  to  membership  work,  and  the  statement  is  made 
that  they  should  lend  their  time  to  other  channels.  A  professional  solicitor 
would  eliminate  such  criticism." 

Judgment  of  Smaller  Cities 

Mr.  J.  R.  Babcock,  of  the  Dallas  Chamber  of  Commerce, 
writes : 

My  experience  is  that  the  best  solicitor  a  commercial  organization 
can  send  out  is  the  boss  man  himself.  I  believe  that  the  secretary  can 
have  better  success  than  a  committee,  and  am  very  sure  that  he  can  have 
better  success  than  any  other  man  in  the  office  force. 

"However,  as  it  is  impractical  for  the  secretary  to  spend  his  time  solicit- 
ing and  handle  the  work  in  the  office,  it  becomes  necessary  to  delegate  his 
authority  to  others,  either  to  the  membership  committee,  or  to  a  paid  man 
on  the  staff.  Between  these  two  methods,  as  a  general  proposition,  I  believe 
the  better  result  can  be  obtained  from  sending  a  man  from  the  staff  provided 
the  man  sent  is  in  close  touch  with  the  work  of  the  organization. 

"This  latter  requirement,  in  my  opinion,  can  not  hold  where  a  regular 
solicitor  is  put  on.  The  greatest  objection  to  employing  a  regular  member- 
ship solicitor  is  that  he,  of  course,  can  not  be  in  as  close  touch  with  the  work 
of  the  organization  as  is  some  man  who  spends  the  larger  part  of  his  time  in 
the  office  and  is  close  up  to  the  head  man. 

"In  a  wholesale  house  a  traveling  salesman  needs  to  know  his  goods.  He 
needs  to  know  something  of  the  general  policy  of  the  house,  but  this  does  not 
change  from  time  to  time;  at  any  rate,  the  changes  are  not  great.  On  the 
other  hand,  the  man  who  goes  out  to  sell  a  membership  in  the  chamber  of 
commerce  has  nothing  to  offer  in  direct  return  for  the  prospective  member, 
and  can  only  sell  that  member  a  patriotic  interest  in  the  growth  and  pros- 
perity of  the  town,  and  at  best  only  a  limited  amount  of  direct  service.     As 


218  ATETHODS  OF  OR(?ANIZATION  AND  OPERATION. 

this  amount  of  direct  service  will  vary  with  each  individual  member,  it  is 
essential  that  the  membership  solicitor  shall  know  with  a  fair  degree  of  ac- 
curacy what  the  policy  of  the  head  or  secretary  of  the  organization  will  be 
towards  this  prospect  after  he  becomes  a  member. 

"For  these  reasons  it  is  next  to  impossible  for  a  paid  solicitor  to  secure 
members  on  the  right  basis  unless  he  be  very  closely  associated  with  the  head 
of  the  organization  and  in  close  touch  with  the  policies  of  the  organization. 
We  have  sent  out  paid  solicitors,  had  one  man  employed  for  six  months,  who 
has  been  president  of  the  old  commercial  club  some  fifteen  or  twenty  years 
ago.  During  the  first  few  weeks  he  brought  in  good  results  from  soliciting 
among  his  friends  of  former  years.  After  this  limited  field  was  worked  he 
was  able  to  do  practically  nothing  in  the  way  of  securing  new  members. 

"We  have  also  tried  the  membership  solicitation  plan  of  having  large 
committees  with  a  great  deal  of  enthusiasm,  and  while  we  secured  a  great 
many  new  members  during  these  campaigns,  have  found  that  the  percentage 
of  holdovers  was  very  small  compared  with  the  members  that  have  been  se- 
cured by  the  secretary  direct  or  one  of  his  men  in  close  touch  with  the  work 
of  the  organization." 

Mr.  W.  T.  Corwith,  Business  Secretary  of  the  Lynchburg 
Chamber  of  Commerce,  says: 

"The  chief  danger  is  that  an  over-enthusiastic  solicitor  who  desires  to 
make  a  good  showing  will  be  tempted  to  overwork  the  local  material,  and 
in  order  to  get  them  to  sign  up  will  hold  out  inducements  which  are  not 
based  upon  a  sound  footing.  The  members  secured  in  this  way  are  sure  to 
make  trouble  later  on." 

We  in  Detroit  had  our  membership  solicitors  work  from  a 
very  carefully  compiled  list  of  prospects.  Morning  conferences 
are  held  between  the  secretary  and  the  solicitors,  and  instruc- 
tions are  given  in  reference  to  the  method  of  approach  which 
solicitors  are  to  make  to  certain  prospects  with  whom  the  secre- 
tary is  acquainted. 

The  solicitors  make  individual  reports  verbally  at  these 
morning  conferences  in  reference  to  the  talks  which  they  have 
had  with  each  man  whose  application  they  secure,  and  also 
with  each  man  whose  application  they  fail  to  secure.  In  this 
way  we  keep  very  closely  in. touch  with  the  sales  arguments 
being  used,  and  do  not  allow  solicitors  to  hold  out  inducements 
not  approved  by  the  secretary. 

We  have  another  check  on  this  by  holding  two  or  three 
times  a  month  conferences  between  the  secretary  and  new  mem- 
bers whose  applications  have  been  secured  by  the  membership 
men,  and  then  there  is  a  frank  talk  between  the  secretary  or 
other  officers  of  the  board  with  these  men  in  regard  to  their 
relationship  to  the  working  part  of  the  board.  They  are  told 
what  they  can  expect  and  what  they  can  not  expect.    If  there 


.METHODS  OF  SUSTAINING  MEMBERSHIP.  219 

are  any  cases  wliere  the  solicitors  have  made  any  promises 
whatever,  we  endeavor  to  draw  this  out  from  the  new  members 
at  these  conferences,  and  we  have  not  as  yet  found  any  instance 
in  which  we  have  been  able  to  criticise  the  salesmen  for  the 
arguments  they  have  used. 

When  we  first  organized  the  work  of  our  membership  so- 
licitors we  had  them  devote  a  certain  portion  of  their  time  to 
collecting  dues  and  calling  upon  members  who  had  resigned. 
Very  quickly  we  had  to  abandon  this,  as  we  found  it  greatly 
reduced  the  efficiency  of  the  salesmen  in  securing  new  members. 
We  then  took  one  of  the  salesmen  who  had  shown  the  greatest 
ability  in  handling  collections  and  resignations  and  assigned 
him  exclu-sively  to  this  work.  This  proved  to  be  an  improve- 
ment over  the  old  plan,  but  was  not  entirely  satisfactory,  be- 
cause in  our  morning  membership  conferences  we  found  the 
salesmen  not  particularly  interested  in  the  reports  and  discus- 
sions between  the  secretary  and  these  collectoi's.  Recently  we 
have  entirely  divorced  the  two,  and  the  solicitors  devote  their 
time  exclusively  to  securing  new  members,  and  their  depart- 
ment is  entirely  distinct  from  the  department  handling  collec- 
tions  and  resignations.  Our  experience  in  this  respect  is  the 
same  as  that  of  the  Merchants'  Association  of  New  York  and 
the  Association  of  Commerce  of  Chicago. 

When  Do  Solicitors  Pay? 

How  large  a  city  has  to  be  to  make  the  employment  of  mem- 
bership solicitors  profitable  for  a  commercial  organization  is  a 
problem  I  have  considered  in  connection  with  this  question. 
Kalamazoo,  a  city  having  from  40,000  to  50,000  population, 
made  a  three  months'  experiment  with  the  employment  of  mem- 
bership solicitors  and  found  it  successful.  They  were  particu- 
larly fortunate  in  getting  a  man  especially  qualified  for  this 
kind  of  work,  but  were  unable  to  hold  him.  Their  experience 
covered  too  short  a  period  to  justify  any  conclusions. 

Any  secretary  in  considering  the  application  of  this  method 
in  a  city  under  100,000  could  determine  for  the  purposes  of  ex- 
periment whether  it  would  be  likely  to  be  worth  while  or  not  by 
carefully  preparing  a  list  of  the  membership  prospects  in  the 
city  and  studying  the  rate  of  growth.  With  this  knowledge  a 
secretary  can  estimate  the  percentage  of  sales  that  could  be 
made  if  the  commercial  organization's  message  could  really 


220  METHODS  OF  ORGANIZATION  AND  OPERATION. 

he  delivered  to  each  of  these  men.  It  is  possible  for  a  man  to 
intervieAv  from  five  to  fifteen  men  a  day,  out  of  which  a  good 
salesman  should  be  able  to  secure  from  one  to  three  applica- 
tions. Any  salesman  who  consistently  secures  one  new  member- 
ship a  day  at  |25  per  year  is  doing  good  work.  Sometimes  they 
average  better  than  this.  In  the  summer  months  it  is  not  pos 
sible  to  do  as  well.  With  this  knowledge  it  is  not  difficult  to 
determine  whether  or  not  it  would  be  possible  to  keep  one  man 
occupied  on  this  work  on  a  paying  basis  for  one  year. 

In  Detroit  we  started  out  with  a  list  of  about  6,000  reason 
ably  promising  prospects,  in  addition  to  which  some  3,000  in 
habitants  are  being  added  to  the  population  of  Detroit  each 
month.  The  Detroit  Board  of  Commerce  already  has  a  member- 
ship which  constitutes  a  little  better  than  one-half  of  one  per- 
cent of  the  city's  population.  Therefore,  out  of  3,000  new 
people  added  to  the  population  each  month,  we  ought  to  se- 
cure over  fifteen  new  members.  With  these  figures  in  mind,  it 
was  not  difficult  for  us  to  determine  that  we  could  keep  from 
two  to  ^Ye  men  engaged  in  this  work  the  year  round  with  profit 
to  the  organization.  The  same  reasoning  can  be  applied  to  any 
city,  no  matter  what  its  population. 

NoAV  the  question  put  up  to  me  was  this :  "Is  the  employ- 
ment of  membership  solicitors  practical?''  I  just  want  to  tell 
you  what  my  conclusions  have  been  after  our  one  year's  ex- 
perience in  Detroit,  and  with  the  light  of  these  different  sidess 
of  the  proposition  laid  before  me  by  other  secretaries,  as  they 
are  now  laid  before  you.  As  I  have  said,  we  don't  consider  that 
question  the  most  important  question.  The  question  that  we 
are  really  trying  to  answer  in  Detroit  is:  "What  is  the  best 
method  of  maintaining  and  increasing  our  membership?"  But 
answering  just  the  question  asked  specifically,  I  am  strongly 
of  the  opinion  that  the  employment  of  membership  solicitors  is 
practical  in  the  larger  cities  of  the  country.  One  objection  has 
been  raised  by  a  number  of  secretaries,  and  that  objection  is, 
that  they  thought  the  cost  too  expensive.  Again,  I  would  like 
to  emphasize  my  belief  that  salaries  paid  to  membership  so- 
licitors and  to  membership  secretaries  should  not  be  considered 
as  an  expense,  but  as  an  investment  from  which  definite  results 
in  proportion  to  the  investment  are  expected;  and  when  the 
results  do  not  justify 'the  expenditure  the  trouble  is  with  the 
men  and  the  management  and  not  with  the  idea.    We  did  not 


MEMBERSHIP  DEVELOPMENT  AND  MAINTENANCE.      221 

consider  the  matter  of  expense  in  Detroit.  We  didn't  cliarge 
up  that  ten  thousand  dollars  to  expense.  It  was  an  invest- 
ment, to  be  judged  entirely  b}^  the  results  produced.  It  has 
not  been  a  liability  to  our  organization — it  has  not  been  an 
expense;  it  has  been  a  source  of  income;  without  it  we  could 
not  have  succeeded  this  year  in  our  annual  program. 

Solicitors  or  Campaigns — Which? 

Now,  I  do  believe  in  membership  committees;  I  do  believe 
in  the  value  of  volunteer  effort;  I  do  believe  in  campaigns.  I 
feel  certain  that  the  employment  of  membership  solicitors  alone 
is  not  the  best  method  of  maintaining  and  increasing  the  mem- 
bership of  a  commercial  organization.  What  we  are  seeking  in 
Detroit  and  what  we  hope  to  be  able  to  answer  during  the 
coming  year  is  the  best  method  of  combining  the  work  of  mem- 
bership solicitors  with  volunteer  effort  sustained  throughout  the 
year  and  culminating  in  a  membership  campaign  either  at  the 
end  or  at  the  beginning  of  each  new  fiscal  year.  And  that  is  the 
conclusion  that  I  have  tentatively  reached  in  regard  to  this 
question — that  the  next  method  is  one  that  will  some  day  be 
followed  by  membership  departments  of  commercial  organiza- 
tions, and  that  will  combine  the  use  of  membership  solicitors 
with  the  volunteer  efforts  of  a  membership  committee,  and  the 
enthusiasm  and  spirit  engendered  by  an  annual  campaign.  I 
thought  you  might  be  interested  in  knowing  the  conclusion 
that  I  have  personally  reached  on  the  subject. 


Membership  Development  and  Maintenance 

By  G.  W.  LEMON 

Membership,  to  quote  from  a  letter  I  recently  received 
from  one  of  the  older  secretaries,  is  the  "veritable  foundation 
stone  of  every  commercial  organization  and  how  to  build  it  up 
and  how  to  maintain  it,  so  that  the  organization  shall  have 
the  three  essentials  that  every  organization  must  have,  is  the 
question.  These  three  essentials ,  as  I  need  hardly  remind  the 
trained  secretary,  are :  Numerical  strength^  adequate  financial 
resources  and  per^sonal  service.  To  these  three  some  associa- 
tions have  aimed  to  add  a  fourth,  democracy/^ 

Leaving  entirely  out  of  account  any  consideration  of  mem- 


222  METHODS  OF  ORGANIZATION  AND  OPERATION. 

bership  campaigns  couducted  by  local  or  professional  workers 
— I  shall  treat  my  subject  under  two  heads : 

(1)  How  shall  we  secure  members  all  the  time — member- 
ship development? 

(2)  How  shall  we  retain  thejn  once  you  have  got  them — 
membership  maintenance? 

I  do  not  flatter  myself  that  anything  I  shall  say  will  be  of 
the  slightest  value  to  executives  who  represent  the  large  or- 
ganizations in  our  great  cities.  My  point  of  view  is  frankly 
that  of  a  man  of  somewhat  limited  experience  who  has  spent 
the  major  part  of  his  secretarial  life  trying  to  serve  the  small 
city  organization. 

How  membership  is  to  be  built  up — that  is  our  first  ques- 
tion. Securing  members  during  a  w^ell-advertised  "revival" 
campaign  is  not  much  of  a  job.  The  enthusiasm  of  the  "teams" 
is  contagious.  The  band  wagon  looks  a  lot  more  cheerful  and 
inviting  to  the  average  citizen  than  the  secluded  corner  and 
consequently  scores  of  men  join  the  knoAV  not  what^  for  reasons 
they  cotild  not  tell.  And  there  you  have  your  first  big  problem 
— ^the  uneducated  member.  What  an  army  they  would  make 
if  we  could  only  "draft"  them  out  of  our  several  organizations. 
And  if  some  genius  should  succeed  in  "mobilizing"  them  I  will 
give  you  one  guess  as  to  where  the  average  secretary  would 
assign  them  for  duty — in  these  stirring  times.  Camp  or  can 
tonment  would  not  have  tliem  very  long,  I  venture  to  say. 

Converting  the  Unregenerate 

These  men  who  do  not  know  the  first  rudiments  of  modern 
commercial  organization  work;  who  do  not  understand  the 
difference  between  a  trade  organization  and  one  which  seeks 
to  serve  the  community;  these  men  have  bought  and  paid  for 
something — your  membership — and  they  demand  value  re- 
ceived.   How  are  you  going  to  give  it  to  them? 

"Do  something — get  bus|y — put  something  over  for  the 
town," — that  is  what  the  average  secretary  w^ill  tell  me.  It  is 
the  stock  advice.  And  it  is  good  so  far  as  it  goes — but  it  does 
not  go  far  enough.  Unless  this  man  is  shown — is  "converted" 
if  you  will — unless  you  can  broaden  his  vision  to  include  the 
other  fellow — all  the  "things-done-for-our-town"  stuff,  will  not 
count  with  him  one  iota. 

"But  why  bother  with  him,"  another  secretary  admonishes. 


MEMBERSHIP  DEVELOPMENT  AND  MAINTENANCE.  223 

(He  is  the  secretary  who  is  always  seeking  the  easy  wa}^  out.) 
"Let  him  go  and  bend  all  your  efforts  upon  getting  in  new 
members  who  Avill  more  than  make  uj)  for  this  croaker." 

Ah,  there's  the  rub !  Getting  new  members  so  long  as  those 
unregenerate  fellows  are  knocking  you  is  some  task — is  not 
that  true?  They  are  undermining  your  organization.  They  are 
helping  create  an  atmosphere  of  captious  criticism.  Member- 
ship development  depends,  in  the  first  place,  upon  good  will; 
your  croaking  member  is  a  source  of  ill-will,  of  disaffection. 
Convert  him  at  all  costs  I  How?  Well,  try  getting  him  to 
Avork.  Some  one  has  said:  "If  you  Avant  to  make  a  man  like 
you,  get  him  to  do  something  for  you/'  Certain  it  is  that  no 
man  is  a  real  member  of  the  chamber  of  commerce  until  he  has 
performed  for  it  some  deed  of  useful  service. 

The  Next  Step 

Having  tried  to  create  an  atmosphere  of  good  will  and  un- 
derstanding so  that  the  organization's  attempts  to  accomplish 
things  shall  not  be  discounted  at  the  outset  by  ignorant  an- 
tagonism— having  cleared  the  ground,  what  is  the  next  step? 

The  next  step,  I  believe,  is  to  make  hig  plans  for  your 
city  and  A^our  organization.  Let  your  young  men  dream  dreams 
and  your  old  men  see  visions  of  the  city  of  their  desire.  Most 
men  like  to  be  connected  with  something  big  and  worth  while, 
not  to  say  heroic.    May  I  illustrate  what  I  mean? 

A  wealthy  manufacturer  was  approached  by  the  secretary 
of  a  worthy  philanthropic  agency  which  was  in  need  of  funds 
for  a  piece  of  definite  and  much-ueeded  work.  The  caller  asked 
the  rich  man  for  $200. 

"No,"  said  the  manufacturer.  "I  am  not  interested."  The 
social  worker  was  nonplused  for  this  man  had  been  one  of  his 
chief  patrons  and  he  began  mildly  to  expostulate. 

"What  will  that  building  you  are  planning  cost?"  the 
manufacturer  suddenly  asked. 

"Five  thousand  dollars." 

"What  nonsense — to  build  a  shack  that  will  have  to  be 
torn  do\^^l  in  a  few  yeai-s.  Now  look  here — ^you  go  to  your 
board  and  tell  them  to  put  $50,000  in  their  budget  for  that 
building — and  I'll  send  you  a  check  for  half  that  amount.  But 
you'll  get  none  of  my  money  for  a  poor,  little  measly  proposi- 
tion such  as  you  put  up  to  me  when  you  came  in." 


224  METHODS  OF  ORGANIZATION  AND  OPERATION. 

If  you  have  a  broad  program — a  strong  platform — and  are 
offering  opportunity  for  individual  effort,  the  men  of  your  com- 
munity, who  are  not  members  of  your  organization,  will  want 
to  come  in.  We  must  make  our  organizations  the  center  of 
life  and  activity  in  our  respective  cities.  If  our  commercial 
organization  is  alive  and  active  we  need  not  fear  the  forma- 
tion of  duplicating  organizations  such  as  manufacturers'  asso- 
ciations, retail  and  wholesale  associations,  traffic  clubs,  build- 
ers' exchanges,  etc.;  organizations  which  would  distract  the 
attention  of  our  members,  taking  both  their  money  and  inter- 
est. Anticipate  the  need  for  such  organizations,  wherever  pos- 
sible, and  provide  them  within ^  or  at  least  in  association  with^ 
the  chamber  of  commerce. 

Some  Methods 

The  various  methods  of  securing  members  are  so  well 
known  that  I  doubt  if  much  that  is  new  can  be  advanced.  Se- 
curing members  by  "revival"  campaigns,  by  paid  solicitors, 
membership  committees,  etc., — these  things  have  been  present- 
ed before  and  threshed  out  at  our  conventions.  But  accepting 
the  dictum  that  "men  need  not  so  much  to  be  instructed  as  to 
be  reminded,"  let  us  briefly  review  and  examine  some  of  the 
methods  in  vogue. 

In  the  case  of  organizations  in  cities  from  50,000  to  125,000 
where  an  assistant  secretary  is  employed,  I  believe  he  is  usual- 
ly entrusted  with  the  task  of  securing  new  members.  As  a  rule 
the  assistant  secretary  works  with  the  bookkeeper  on  "prospec- 
tive members."  A  duplicate  op  triplicate  file  is  made  and,  when 
ready,  the  membership  committee  is  called  and  the  list  very 
carefully  gone  over.  Dave  Dickinson's  name  is  given  to  com- 
mitteeman John  Woolman  but  (one  or  two)  copies  of  the  card 
remain  in  the  office  to  show  what  disposition  has  been  made  of 
the  prospective  member.  The  assistant  secretary  makes  daily 
calls  in  the  morning  or  afternoon  for  an  hour  or  two  either  by 
himself  or  with  a  member  of  his  committee.  If  the  "right  man" 
to  reach  Dave  Dickinson  is  not  on  the  membership  committee, 
then  some  one  else  is  drafted — may  be  an  officer  or  director  or 
the  secretary.  Some  secretaries  in  the  smaller  organizations 
have,  I  fear,  the  wrong  idea  about  personal  solicitation  of  mem- 
bers. I  have  heard  men  remark  that,  it  wasn't  dignified  for  a 
secretary  to  solicit  members  or  go  out  and  try  to  convert  a  re- 


MEMBERSHIP  DEVELOPMENT  AND  MAINTENANCE.     225 

calcitrant  member.  I  cannot  agree !  When  occasion  demands  I 
believe  that  the  secretary  ought  to  jump  right  in  and  do  his 
bit  for  membership,  not  tyiifg  himself  up  with  the  details,  but 
ready  to  help  out  upon  extraordinary  occasions. 

From  this  survey  one  may  deduce  the  following:  Gather- 
ing all  of  the  membership  committee  activities  or  "stunts'^ 
into  one  compact  whole  it  is  found  that  our  composite  mem- 
bership committee  will  meet  at  regular  intervals,  generally  at 
luncheon;  that  it  will  receive  and  exchange  membership  pros- 
pects and  swap  experiences;  that  it  will  discuss  new  methods 
of  reaching  "hard  ones;"  that  it  will  plan  new  arguments  and 
improve  old  ones  and  go  at  it  again  with  renewed  vigor. 

It  has  been  found  wise  to  occasionally  limber  up  the  ora- 
torical guns  and  have  membership  luncheons  or  dinners.  Bring- 
ing a  fellow  secretary  to  speak  works  out  finely  if  the  said 
fellow  secretary  is  tactful,  forceful,  and  above  all,  brief.  I 
will  venture  to  say  this:  That  the  average  business  man  will 
not  listen  intently  to  any  address  for  more  than  30  minutes. 
Many  a  fine  occasion  has  been  killed  by  talk.  Ahva3^s  choose 
an  athletic  toastmaster — with  more  physique  than  eloquence 
— who  can  be  trusted  to  keep  every  speaker  strictly  to  the  time 
limit.  It  is  a  good  plan  to  put  forth  a  little  evangelistic  effort 
at  every  public  meeting.  Extending  the  invitation  to  join  will 
seldom  result  in  a  zero  mark  on  your  membership  book,  granted 
that  your  members  have  formed  a  commendable  habit  of  bring- 
ing a  friend  or  associate  to  every  social  event  of  the  organiza- 
tion. 

But  we  miist  press  on  to  the  second  part  of  the  subject: 
71  ow  to  Keep  Members  Whoi  Yoa  Once  Have  Them — Memher- 
ship  Maintenance. 

Membership  lapses  may  safely  be  taken  as  the  pulse  of  the 
organization.  A  certain  shrinkage  is  inevitable,  but  when  the 
rate  is  seen  to  be  increasing  it  is  time  to  stop,  look  and  listen ; 
it  is  time  to  subject  the  organization  to  a  searching  enquiry 
and  to  seek  for  the  disease  of  which  the  resignations  and  with- 
drawals are  merely  a  visible  manifestation. 

Recapitulation 

To  recapitulate.  The  problem  has  been  divided  into  two 
parts.  In  the  first  part  huilding  tip  the  membership  is  dealt 
with  under  the  following  heads : 


226  METHODS  OF  ORGANIZATION  AND  OPERATION. 

(1)  Converting  the  iinregenerate  member. 

(2)  Planning  big  things  for  the  organization  and  city. 

(3)  Various  methods  of  hantlling  membersliip  work;  (a) 
Paid  solicitors,  (b)  Standing  and  special  committees,  (c)  Sec- 
retary and  assistant  secretary. 

In  discussing  the  second  part  of  the  problem,  how  to  keep 
memhers  when  once  yon  have  secured  ihem^  the  following  points 
are  emphasized : 

(1)  Make  the  organization  truly  democratic. 

(2)  Work  constantly  to  increase  man  power. 

(3)  Do  not  allow  your  board  to  usurp  the  functions  of 
the  committees. 

(4)  Stick  to  the  primary  purpose  of  a  house  organ. 

(5)  And  most  important  of  all,  set  your  members  to 
work. 


Elements  of  Membership  Conservation 

By  ROBERT  B.  BEACH 

Whfct;:  IS  the  weak  spot  in  your  chamber  of  commerce?  I 
am  leading  off  with  a  frank  question.  Having  the  first  op- 
portunity to  answer,  I  will  give  an  equally  frank  reply.  The 
weak  spot  is  the  membership.  You  may  disagree  with  me.  It  is 
my  guess  that  you  do.    It  is  also  my  guess  that  I  am  right. 

There  is  no  more  important  problem  that  comes  to  any  of 
us  than  what  we  are  pleased  to  call  membership  conservation. 
The  resources,  the  man-power  and  the  success  of  every  chamber 
of  commerce  are  bound  up  in  it. 

There  are  just  two  reasons  why  most  of  us  fail  to  give  mem- 
bership conservation  the  attention  it  deserves.  One  reason  is 
because  it  is  in  fact — though  not  in  importance — a  secondary 
matter. 

The  first  proposition  is  to  build  a  chamber  that  is  alive  and 
on  the  job  and  does  things.  If  that  is  done  the  membership  will 
conserve  itself.  The  other  reason  is  that  the  problem  of  mem- 
bership conservation  is  exceedingly  difficult.  It  is  a  whole  lot 
easier  to  evade  the  issue  than  it  is  to  meet  it.  It  sometimes  hap- 
pens that  secretaries,  like  other  physical  phenomena,  follow 
the  course  of  least  resistance.  The  selling  of  an  association  to 
its  membership  is  a  most  undeveloped  and  under-rated  science. 


ELEMENTS  OF  MEMBERSHIP  CONSERVATION.  227 

Wastage  in  this  department  represents  a  loss  of  energy  that 
would  wreck  any  ordinary  business  enterprise. 

Usually  the  so-called  normal  losses  are  too  high  and  the 
reason  they  are  too  high  is  that  a  disproportionately  large 
amount  of  effort  to  bringing  a  man  into  the  chamber  is  made 
and  a  disproportionately  small  amount  of  effort  to  holding  him 
there  when  he  is  secured. 

It  is  good  to  get  members,  but  it  is  better  to  keep  them. 
The  getting  of  members  is  accomplished  by  effective  salesman- 
ship ;  the  keeping  of  members  is  accomplished  by  delivering  the 
goods  and  just  a  little  more. 

Why  Members  Resign 

Why  do  your  members  resign?  Did  you  ever  catalog  the 
reasons?  1.  Because  they  get  nothing  out  of  it.  2.  Because 
they  cannot  attend  meetings.  3.  Because  they  haven't  time  to 
be  active.  4.  Because  they  are  not  interested.  5.  Because  they 
have  a  grievance.  G.  Because  they  object  to  action  taken.  7. 
Because  they  cannot  afford  it. 

Put  all  these  reasons  together  and  they  reduce  to  one  that 
contains  them  all :  "I  am  out  of  touch  with  the  chamber  and 
the  chamber  is  out  of  touch  with  me." 

That  accounts  for  the  grievance,  and  even  for  the  "cannot 
afford.^'  Because  men  forget  grievances  when  they  are  in  touch 
and  they  can  afford  the  things  they  really  Avant. 

Suppose  for  a  moment  we  review  the  situation  positively 
instead  of  negatively.  Why  do  members  retain  their  member- 
ships? What  are  the  particular  features  of  the  chamber's  ac- 
tivities that  hold  a  member  to  the  organization?  There  are 
five: 

1.  Achievements — The  big.  things  you  are  doing.  A  cer- 
tain part  of  your  membership  is  content  to  forget  the  other 
things,  expecting  no  individual  benefits,  seeking  no  individual 
activity.  These  members  are  willing  to  give  financial  support 
as  long  as  they  are  persuaded  that  good  work  is  being  done  in 
their  behalf. 

2.  Service — The  direct  aid  you  give  to  your  members.  To 
some  this  is  the  real  basis  of  membership.  They  are  not  the 
altruists  of  your  enrollment,  they  are  practical  men  inclined 
to  measure  the  value  of  the  chamber  by  the  frequency  they  have 


228  METHODS  OF  ORGANIZATION  AND  OPERATION. 

occasion  to  make  demands  upon  it  and  the  promptness  and 
liberality  of  the  response. 

3.  Meetings — Source  of  inspiration  and  acquaintance.  To 
not  a  few,  meetings  wre  the  association.  Other  benefits  may 
be  intangible,  but  the  meetings  are  real.  Personal  contact  cre- 
ates personal  interest,  the  root  of  membership  stability. 

4.  Activity — A  personal  part  in  the  work  of  the  chamber. 
There  is  no  need  to  sell  the  chamber  to  the  active  worker.  He 
measures  the  value  of  the  chamber's  work  by  the  work  he  him- 
self puts  into  it.  As  long  as  he  labors  for  the  joy  of  doing  and 
feels  that  his  labors  are  prod\ictive,  you  can  put  him  down  as  a 
man  who  himself  is  thoroughly  sold  and  who  in  turn  will  sell 
others. 

5.  Contact  with  the  chamber.  Kot  all  the  members  can  be 
employed  at  one  time.  Not  all  can  or  will  attend  meetings. 
But  there  are  other  points  of  contact.  Those  members  who 
cannot  or  do  not  share  personally  in  the  day-to-day  activities, 
are  called  upon  for  advice ;  they  are  given  special  assignments ; 
they  are  kept  informed;  they  are  made  to  feel  that  they  are 
necessary  to  the  chamber.  So  long  as  that  feeling  continues, 
they  are  fixtures.  So  soon  as  that  feeling  ceases  they  become 
floaters  and  are  in  danger  of  drifting  aw^ay. 

How  Members  Are  Retained 

Using  these  five  principles  as  a  basis  for  our  deductions, 
the  elements  of  membership  conservation  may  be  expressed  very 
simply  in  this  way: 

1.  Keeping  your  members  informed.  2.  Keeping  your  mem- 
bers satisfied.  3.  Keeping  your  members  interested.  4.  Keep- 
ing your  members  busy.     5.  Keeping  your  members  in  touch. 

Membership  conservation  is  an  idle  occupation  unless  there 
is  back  of  it  an  effective  organization  and  real  achievements. 
We  are  assuming,  not  unreasonably,  that  each  of  our  chambers 
is  well  organized,  well  managed — we  admit  that — and  is  per- 
forming a  worth-while  service  in  the  worth-while  way. 

Let  us  imagine  that  you,  in  the  spirit  of  candid  explora- 
tion, are  making  a  little  journey  into  the  life  of  a  compara- 
tively inactive  member.  At  .the  outset — for  all  members  must 
begin — ^you  are  urged  very  strenuously  to  join  the  chamber. 
You  are  flooded  with  letters,  pamphlets,  and  a  variety  of  print- 
ed appeals.    You  are  beset  with  telephone  calls  and  personal  in- 


ELEMENTS  OF  MEMBERSHIP  CONSERVATION.  229 

lerviews.  You  sign  up.  Suddenly  this  vast  interest  ceases. 
You  are  notified  of  your  election  by  a  stereotype  form.  At 
regular  intervals  you  receive  bills  for  dues. 

You  receive  printed  notices  of  meetings,  which — since  you 
are  not  in  the  habit  of  attending — are  glanced  at  and  laid 
aside.  You  receive  copies  of  bulletins,  the  contents  of  which 
you  soon  take  for  granted  and  "approve  without  reading." 
You  receive  an  invitation  to  the  annual  banquet,  which,  because 
it  is  somewhat  out  of  the  ordinary,  you  accept.  You  put  on  your 
dinner  coat  and  go.  You  are  greeted  at  the  door  by  a  recep- 
tion committee,  whose  cordiality  is  vigorous  but  impersonal. 
You  find  that  most  of  the  people  you  know  have  table  parties 
of  their  own  and  you  are  turned  over  to  a  group  which  with 
every  intent  of  being  sociable  still  has  interests  that  concern 
themselves  more  than  they  concern  you. 

When  you  receive  notice  of  the  annual  election  you  refrain 
quite  properly  from  voting  because  it  is  more  or  less  of  a  for- 
mality and  the  result  a  foregone  conclusion.  When  you  see  the 
chamber  mentioned  in  the  morning  paper  you  are  reminded  not 
unpleasantly  that  you  are  connected  with  it.  You  have  never 
had  an  impelling  desire  to  sacrifice  time  and  effort  and  are 
reasonably  complacent  in  being  let  alone  in  the  matter  of  com- 
mittee service.  Y^'ou  have  a  vague  idea  that  there  are  a  lot  of 
young  fellows  who  do  the  running  about  because  they  like  that 
sort  of  thing. 

Occasionally  you  get  a  request  by  form  letter  to  go  out  and 
get  a  ncAv  member.  You  mentally  resolve  you  will  comply  when 
favorable  occasion  offers.  The  occasion  does  not  happen  along 
and  the  matter  slips  your  mind.  You  are  not  displeased  or  dis- 
satisfied. Probably  you  are  happy  that  the  chamber  makes 
such  slight  demands  upon  you.  Y'ou  had  apprehended  that  it 
would  be  more  exacting. 

Sometimes  there  come  to  you  matters  of  public  moment 
that  are  not  as  they  should  be.  You  wonder  why  somebody 
doesn't  do  something.  Perhaps  you  wonder  why  the  chamber 
doesn't  do  something.  It  may  be  that  you  are  impelled  to  offer 
a  suggestion  which  you  forward  by  letter.  In  a  few  days  you 
receive  a  profuse  note  of  thanks  from  the  secretary,  who  is 
doing  his  blessed  best  to  be  appreciative.  The  suggestion  he 
tells  you  has  been  referred  to  a  committee  for  consideration. 
Time  slips  by.     You  forget  about  it.     So  apparently  does  the 


230  METHODS  OF  ORGANIZATION  AND  OPERATION. 

chamber.  You  take  all  this  as  a  matter  of  course.  You  go  on 
paying  your  dues.  You  are  a  member  in  good  standing.  Ev- 
eryone is  content. 

The  Unknown  Member 

Here  is  a  member  who,  so  far  as  3  our  records  may  show, 
is  as  good  as  the  best  on  your  books,  yet  who  unbeknown  to 
you  and  unbeknown  to  himself,  is  in  a  dangerous  condition.  If 
exposed  to  the  contagion  of  discontent  he  would  quickly  con- 
tract the  disease.  He  is  an  element  of  weakness,  not  a  source 
of  strength. 

This  member  is  summoned  by  the  president  of  the  chamber 
to  serve  on  a  committee  that  is  to  receive  a  distinguished  guest 
of  the  city.  The  secretary  drops  him  a  line,  tipping  off  a  busi- 
ness deal  that  he  may  be  interested  in  following  up.  He  is  in- 
vited— and  responds — to  an  invitation  to  "sit  in"  with  the  board 
of  directors  at  a  conference  that  has  to  with  the  chamber's 
program  of  work,  and  he  comes  awaj-  feeling  that  he  has  had 
a  glimpse  of  the  inner  works.  A  member  of  the  booster  com- 
mittee calls  him  on  the  'phone  and  gets  him  to  bring  a  mutual 
acquaintance  to  mid-Aveek  luncheon.  He  finds  springing  up 
within  him  a  desire  to  have  more  to  do  with  the  chamber  of 
commerce  and  its  activities. 

How  can  you  make  the  individual  member  an  inseparable 
part  of  the  chamber  and  its  work?  The  answer  is — repeating 
Avhat  we  have  called  the  elements  of  membership  conservation 
— by  keeping  him  informed,  satisfied,  interested,  busy,  in  touch. 
But  how  keep  him  informed?  How  keep  him  satisfied?  How 
keep  him  interested?  How  keep  him  busy?  How  keep  him  in 
touch?  By  studying  every  possible  point  of  contact.  By  choo- 
sing those  which  seem  practical.  By  laying  out  a  program— 
which  we  may  dignify  by  calling  a  program  of  membership 
conservation — and  making  that  program  the  basis  of  your  re- 
lationship with  your  members. 

I  do  not  maintain  that  one  program  will  meet  the  needs 
of  all  chambers.  T  am  inclined  to  believe  that  one  program  will 
meet  the  needs  of  but  one  chamber.  In  no  two  particular  or- 
ganizations are  conditions  just  alike,  but  I  do  believe  that  the 
same  principles,  if  sound,  will  work  under  all  conditions  and 
that  a  program  can  and  must  be  developed  for  every  chamber 
that  will  demonstrate  its  value  by  the  acid  test  of  dependable 
results. 


ELEMENTS  OF  MEMBERSHIP  CONSERVATION.  231 

Consider  for  a  moment  the  possible  ways  of  keeping  in 
touch  with  the  member.  By  meeting  him — the  most  desirable 
form  of  contact.  By  telephoning  him — possibly  next  best  to 
seeing  him.  By  letter — personal,  of  course.  By  printed  com- 
munication, impersonal,  but  direct.  By  general  printed  mat- 
ter— bulletins  and  the  like.  Through  the  press.  And  in  the 
mass,  through  gTOup  meetings  large  and  small. 

Observe,  there  are  various  avenues.  Answer  for  yourself 
the  question  how  many  avenues  are  you  employing.  How  ef- 
fectively are  you  using  them?  As  a  matter  of  fact  you  could 
take  almost  any  one  of  these  means — letter  writing  for  example 
— and  so  develop  it  that  it  would  accomplish  all  five  of  the  ele- 
ments of  membership  consei-vation. 

Program  of  Membership  Conservation 

I.  Signing  the  Memher. 

a.  Selling  campaign  based  on  service  of  chamber  to  com- 

munity. 

b.  "Why  you  should  be  a  member,''  printed,  helpful  to  the 

man  who  sells  and  the  man  who  signs. 

c.  Send  him  between  time  of  application  and  his  election 

the  graphic  story  of  the  chamber — what  it  is.  how 
it  works,  told  in  charts — something  he  will  observe 
because  it  is  different  and  will  understand  because 
it  is  clear. 

II.  Introduction  to  Chamber. 

a.  Three  letters  following  election:    One  from  secretary, 

one  from  chairman  of  membership  committee,  one 
from  president. 

b.  Definite  appointment  to  visit  headquarters — not  an  in- 

definite "sometime."    Appointments  may  be  grouped. 

c.  Luncheon  appointment  at  meeting  of  chamber  with 

representatives  of  personnel  committee. 

d.  Personnel  record  indicating  what  he  is  interested  in 

and  what  he  is  qualified  for  based  on  interview 
above. 

e.  New  members'   conference,   arranged  when  ten  or  a 

dozen  new  members  can  be  brought  together  with  a 
few  old-timers  and  members  of  the  board.  A  busi- 
ness meeting  to  discuss  chamber  activities  and  gen- 
erate ideas. 


232  METHODS  OF  ORGANIZATION  AND  OPERATION. 

III.  Keeping  Him  Active. 

a.  Personnel  record  should  be  supplemented  with  service 

record.  The  two  may  be  combined.  Service  record 
keyed,  so  that  committee  assignments  can  be  made 
with  the  view  to  giving  the  largest  number  an  op- 
portunity to  work. 

b.  Special  assignments — a  variety  of  "small''  jobs — dis- 

tributed as  widely  as  consistent. 

c.  Kecord  of  attendance  with  a  round-up  of  absentees,  say 

four  times  a  year  (or  oftener  if  you  like)  with  a 
personal  reminder,  not  of  their  non-attendance,  but 
of  the  particular  reason  why  they  are  wanted  at  a 
particular  time. 

IV.  Information. 

a.  A  monthly  news-letter — not  the  usual  bulletin — some- 

thing different — an  intimate  letter  concerned  solely 
with  the  chamber,  but  with  the  brevity  and  direct- 
ness of  news.  Four  pages,  no  more.  Need  not  con- 
flict with  the  weekly  or  monthly  journal  if  the  cham- 
ber prints,  one. 

b.  At  convenient  and  rather  frequent  periods  devote  five 

minutes  of  a  general  meeting  to  the  report  by  a  com- 
petent speaker  of  some  specific  achievement,  coupled 
with  message  from  membership  committee. 

c.  After  completed  tasks,  a  letter  to  those  particularly  in- 

terested both  on  membership  list  and  permanent 
prospect  list. 

d.  Also  the  usual  publicity  channels,  including  the  press. 

V.  Consultation. 

a.  Periodic  membership  conferences — limited  groups,  gen- 

eral in  character ;  discussion  of  current  and  proposed 
activities  with  well-informed  discussion  leaders. 
Such  conferences  may  well  have  the  definite  purpose 
of  contributing  to  the  general  program  of  the  cham- 
ber. 

b.  A  systematic  plan  of  writing  to  members  for  expres- 

sions of  opinion,  advice,  suggestions.  Some  of  these 
expressions  may  be  published  to  advantage  as  inter- 
views. 


ELEMENTS  OF  MEMBERSHIP  CONSERVATION.  233 

c.  An  annual  or  biennial  referendum — chamber  activities 

— not  recommended  in  all  cases,  but  highly  advan- 
tageous in  some. 

d.  Sub-committees  of  personnel  committee,  who  will  sit 

down  at  frequent  intervals  in  groups  of  two  or  three 
with  members  who  have  "ideas."  Never  regard  ideas 
lightly — something  may  occasionally  come  of  them. 

VI.  Service. 

a.  Determine  by  record  what  portion  of  membership  fails 

to  use  various  services  which  chamber  performs.  Re- 
gard these  as  "service  prospects"  and  organize  a 
mildly  insistent  campaign  (correspondence  prob- 
ably) to  get  them  coming  to  the  chamber  for  what 
it  can  give. 

b.  Business  "tips"  to  members — advance  information  they 

use  to  advantage — is  outstanding  evidence  that  the 
chamber  is  on  the  job. 

c.  Advertise  "privileges  of  membership,"   referring  pri- 

marily to  service.  The  reaction  on  the  secretary  is 
good ;  it  may  lead  to  improving  facilities  for  service. 

VII.  Terminations. 

a.  A  resignation  card  so  devised  that  you  will  have  an 

absolute  record  of  the  effort  made  to  reinstate,  to- 
gether with  reasons  and  dates — the  basis  of  effective 
follow-up.  Accept  no  resignation  without  a  com- 
plete record  that  shows  justifiable  cause  or  a  hope- 
less case. 

b.  Where  the  cause  might  have  been  corrected,  take  pre- 

cautions against  a  "next  time,"  and  thus  profit  by 
your  loss. 

c.  The  only  termination  that  the  secretary  may  regard  as 

fully  justifiable  is  termination  by  death.  A  member 
who  dies  in  good  standing  has  given  to  his  chamber 
the  "last  full  measure  of  devotion"  and  is  entitled  to 
a  becoming  obituary. 

There,  gentlemen,  is  a  program.  Not  necessarily  a  pro- 
gram for  you ;  not  necessarily  a  program  for  me.  Nevertheless 
a  program  which  will  get  results. 


284  METHODS  OF  ORGANIZATION  AND  OPERATION. 

Membership  Methods  in  Small  Organizations 

By  J.  P.  HARDY 

Second  cousin  to  the  financial  nightmare  of  the  chamber  of 
the  small  city  is  the  difficulty  of  interesting  and  getting  the 
active  cooperation  of  its  members.  Many  of  the  causes  that 
make  financial  problems  difficult  of  solution  are  responsible 
for  this  difficulty  also.  The  manager  of  the  branch  office,  whose 
real  interest  lies  many  miles  away  in  tlie  home  office,  is  usually 
a  difficult  subject;  he  is  a  salaried  employee  and  owes  his  duty, 
and  too  often  only  duty,  to  the  corporation  which  pays  his 
salary.  He  probably  joins  the  organization  as  a  member  and 
when  his  dues  are  paid  is  satisfied  that  he  has  done  his  full 
duty — nor  is  he  alone  in  this  respect  in  a  small  city.  The 
average  business  man — having  so  much  detail  to  attend  to  in 
his  own  affairs — finds  little  or  no  time  to  devote  to  the  affairs 
of  the  community;  that  is  to  say,  the  real  big  men  in  small 
communities  are  very  apt  to  limit  their  support  of  the  chamber 
to  the  payment  of  dues. 

In  response,  however,  to  the  question,  "What  do  you  regard 
as  your  most  difficult  task?"  six  cities  say,  "Getting  successful 
committee  meetings,''  seven  say,  "Keeping  members  interested/' 
one  says,  "Keeping  retailers  interested,"  two  say,  "Satisfying 
the  knocker."  This  I  submit  as  evidence  of  abundant  lack  of 
cooperation  and,  therefore,  of  personal  service. 

Some  of  the  answers  to  my  inquiry  throw,  I  think,  some 
light  on  this  matter  of  personal  service.  There  is  evidence 
enough  to  demonstrate  the  fact  that  in  small  communities  the 
intimate  acquaintance  existing  between  the  members  of  the 
organization  often  acts  as  a  hindrance  to  really  efficient  com- 
mittee work.  A  knowledge  of  the  limitations  of  your  neighbor 
often  prompts  you  to  belittle  his  efforts — or  refuse  to  sanction 
his  appointment  for  committee  service,  believing  him  incap- 
able of  delivering  the  goods.  Again  the  answers  to  the  query 
relative  to  cooperation  on  the  part  of  the  city  government  is 
illuminating  on  this  question  of  personal  service.  Eleven  cities 
admit  that  this  cooperation  is  lacking  in  small  communities. 
The  individual  is  generally  in  close  touch  with  the  affairs,  poli- 
cies and  sentiments  of  the  city  administration  and  aligns  him- 
self closely  with  one  or  the  other  wing  of  the  city  government — 
a  specie  that  usually  has  at  least  two  wings — as  a  result  of 


MEMBERSHIP  METHODS  IN  SMALL  ORGANIZATIONS.  235 

which  questions  affecting  civic  improvements,  or  any  matters 
affecting  the  policy  of  the  city  administration,  too  often  find 
the  commercial  organization  hampered  in  its  effort  to  effect  a 
reform  or  promote  an  improvement,  because  of  the  individual 
alignment  to  which  I  liave  referred.  These,  in  brief,  are  to  my 
mind  the  real  difficulties  of  the  small  city  organization. 

Let  us  now  turn  our  attention  to  the  constructive  problems 
that  engage  their  attention  and  which  must  be  and  are  being 
solved  despite  the  obstacles  above  referred  to. 

Demands  of  Members 

Now  a  few  words  as  to  the  demands  that  members  make 
on  their  organization.  It  is,  I  think,  an  invariable  rule  that 
those  who  give  the  least  personal  service  are  the  loudest  in  their 
demands  for  organization  accomplishment.  Small  cities  usual- 
ly have  insatiate  appetites  for  growth ;  the  quickest  method  of 
inducing  growth  is  undoubtedly  that  of  bringing  in  manufac- 
turing enterprises.  The  usual  and  most  insistent  demand, 
therefore,  is  for  factories — a  demand  that  is  extremely  difficult 
to  satisfy — and  one  that  it  is  not  always  wise  to  heed  too  close- 
ly. The  demand  for  protection  is  probably  next  in  order.  This 
demand  is  negative  in  its  make-up — one  that  asks  of  the  associa- 
tion that  it  make  no  effort  to  bring  in  competitive  business.. 
This,  though  not  usually  as  common  as  the  other,  yet  is,  I  think, 
one  presenting  greater  difficulties  of  solution.  Let  me  illus- 
trate: You  have,  we  will  say,  one  wholesale  grocery  house; 
you  and  your  committee  know  that  the  field  is  large  enough  for 
two,  and  that  the  second  will  stimulate  the  business  of  the  older 
house,  rather  than  discount  it,  on  the  theory  that  the  larger  the 
market  the  more  buyers,  but  you  can't  expect  the  old  house  to 
see  it  that  way.  And  here  you  have  a  real  job — one  calling  for 
a  fearless  policy  of  progression.  Go  ahead  and  get  your  second 
house — the  management  of  the  old  house  will  thank  you  some 
day  if  you  succeed.  These  two  are,  I  think,  the  demands  that 
we  have  with  us  all  the  time.  There  are,  of  course,  many  others 
infrequent  in  their  recurrence — but  just  as  troublesome.  There 
is  the  demand  for  service  to  the  member — purely  personal — 
often  impossible,  and  generally  unreasonable.  The  demand  T 
mean  of  the  fellow  who  wants  to  be  the  first  to  be  let  in  on  a 
deal  or  who  won't  join  a  movement  unless  he  is  afforded  some 
special  privilege  that  if  given  him  must  be  denied  to  others 


236  METHODS  OF  ORGANIZATION  AND  OPERATION. 

This  variety  of  demand  requires  careful  handling,  a  lot  of 
diplomacy,  and  above  all  firmness. 

These  demands  on  the  association  are,  I  believe,  more  acute 
in  proportion  to  the  size  of  the  membership  and  the  population 
of  the  town — the  smaller  the  town  the  greater  are  the  difficul- 
ties along  this  line  and  the  bigger  the  task  of  solving  them. 

Finally  there  is,  I  believe,  no  panacea  for  the  relief  of  or- 
ganization troubles  any  more  than  there  is  any  unfailing  recipe 
for  working  out  its  problems — local  conditions  vary  to  such  a 
degree  that  the  rule  which  works  well  in  one  place  will  fail  in 
another.  The  chief  task,  I  believe,  of  the  secretary  of  a  small 
town  organization  is  largely  that  of  educating  his  people;  to 
strive  to  do  all  that  is  expected  will  usually  spell  failure — the 
selection  of  the  effort  that  will  produce  real  good  to  the  commu- 
nity and  laying  stress  on  that  one  effort — in  other  words,  lay- 
ing out  a  small  program  and  doing  it  well  and  thoroughly,  while 
it  may  not  appease  the  appetite  of  the  average  member  during 
the  constructive  period  of  the  work  will,  when  the  job  has  been 
accomplished,  yield  a  greater  return  than  that  of  the  ambitious 
program  that  keeps  everybody  on  their  toes  for  awhile  and  final- 
ly lets  them  down  when  it  fails. 


Sustaining  the  Interest  of  Members 

By  JAMES  A.  McKIBBEN 

We  tried  in  Boston  in  1913  one  experiment,  devised  by  our 
versatile  membership  committee  and  assistant  secretary  Whit- 
tier.  AVe  had  been  conducting  a  limited  number  of  industrial 
excursions — that  is,  "tours"  of  members  through  notable  in- 
dustrial establishments  in  and  around  Boston.  They  conceived 
the  idea  of  conducting  some  "industrial  trips  through  the  works 
of  the  chamber.'' 

Perhaps  a  very  brief  description  of  the  situation  which 
made  the  committee  on  membership  think  this  experiment  ad- 
visable would  be  interesting  to  you.  The  position  which  the 
chamber  and  which  certain  officers  of  the  chamber  (not  always 
with  the  authority  of  the  chamber)  had  taken  in  regard  to  a 
certain  important  matter  was  strongly  resented  by  certain 
members — not  only  because  it  was  against  their  own  personal 
interests,  but  because  they  sincerely  believed  that  bad  judgment 


MEMBERSHIP  METHODS  IN  SMALL  ORGANIZATIONS.  237 

had  been  exercised,  and  that  the  position  taken  was  not  in  the 
interest  of  the  public  as  a  whole.  When  this  feeling  was  at 
its  height,  the  time  for  electing  directors  arrived;  and  there 
was  a  strong  opposition  ticket,  with  a  strong  and  active  group 
of  members  of  the  chamber  back  of  it,  put  into  the  field.  The 
prophet  of  calamity  for  the  chamber  was  abroad  in  the  land, 
and  there  was  real  anxiety  as  to  the  final  outcome. 

The  situation  was  one  Avhich  might  very  well  discourage 
any  committee  on  membership;  but  the  effect  on  our  committee 
w^as  to  make  it  decide  that  the  time  had  arrived  to  put  on  a 
little  more  steam.  We  do  not  believe  very  much  in  member- 
ship "campaigns'^  in  Koston,  but  the  situation  at  that  time 
seemed  to  the  committee  on  membership  to  make  one  advisable. 
Its  members  refused  to  be  drawn  into  the  controversy  in  any 
way ;  but  instead  of  going  on  in  the  normal  way,  the  committee 
instituted  a  campaign  for  new  members,  and  in  two  wrecks  se- 
cured the  applications  of  367  men — and  without  the  payment 
of  a  single  cent  to  paid  solicitors. 

Now,  these  men  came  in,  in  December,  and,  joining  as  they 
did  at  the  end  of  the  year,  it  cost  them  a  very  small  amount; 
but  a  bill  for  tlie  whole  of  next  year's  dues  would  in  the  natural 
course  be  sent  them  promptly  on  the  first  of  January.  The 
committee  on  membership  had  noticed  that  if  a  member  under- 
stood the  objects  and  field  w^ork  of  the  chamber  and  knew  Avhat 
it  was  doing,  he  was  not  likely  to  drop  out  of  the  chamber.  It, 
therefore,  wanted  to  get  them  informed  about  the  chamber,  and 
conceived  a  plan  for  doing  it.  These  new  members  were  asked 
how  many  of  them  w^ould  be  interested  in  making  "tours" 
through  the  chamber  of  commerce.  Over  200  wanted  to.  They 
were  divided  into  groups  of  25,  and  an  old  member  of  the  cham- 
ber put  at  the  head  of  each  group.  Each  "tour"  consisted  of 
a  meeting  of  two  groups  at  luncheon  (never  the  same  two), 
so  arranged  that  before  the  "tours"  were  finished  each  member 
of  any  particular  group  had  met  the  members  of  every  other 
group  and  thus  had,  within  a  few  weeks,  as  a  result  of  his  join- 
ing the  chamber,  considerably  widened  the  circle  of  his  ac- 
quaintance. These  industrial  excursions  differed  from  the 
others,  in  that  instead  of  taking  the  men  to  the  factory,  ex- 
hibits from  the  factory  were  brought  to  them.  At  each  meeting 
some  officer  of  the  chamber  and  two  chairmen  or  representa- 
tives of  important  committees  gave  short,  snappy,  intimate  ten- 


238  METHODS  OF  ORGANIZATION  AND  0PERATIOx\. 

minute  talks  ou  the  chamber  and  some  of  the  important  pieces 
of  work  upon  which  it  was  at  that  time  engaged.  The  effect 
was  electrical.  Of  those  secured  in  this  campaign,  a  much 
larger  percentage  stayed  in  and  paid  their  dues  than  we  had 
expected. 

The  prophet  of  calamity,  by  the  Avay,  did  not  "make  good." 
Our  resignations  this  year,  instead  of  being  enormously  larger, 
as  had  been  predicted,  were  25  per  cent  less  than  the  preceding 
year. 

The  Fourth  Essential  to  Sustained  Interest 

All  of  these  latter  features  are  valuable,  not  only  as  a  means 
of  conveying  information  to  your  members,  but  because  when 
the  members  who  take  part  in  them  get  in  with  the  crowd,  they 
have  a  natural  tendency  to  go  along  with  the  crowd,  and  also 
because  they  are  to  some  small  degree  examples  of  the  fourth, 
and  remaining,  gTeat  main  support  of  a  strong  and  lasting  in- 
terest on  the  part  of  your  members. 

Granted  an  efficient  organization,  a  correct  understanding 
of  its  proper  function  and  field  of  work,  and  efficient  agencies 
for  keeping  in  close  touch  with  your  members  and  of  keeping 
them  informed  of  what  the  organization  is  doing,  the  fourth 
and  last  essential  seems  to  me  to  be  to  get  just  as  many  of  your 
members  into  the  work  as  you  can — every  single  one  of  them,  if 
possible. 

Practically  every  member  of  an  organization  wants  to  take 
part  in  its  work — or  thinks  he  does.  Experience  will  convince 
you  that  a  large  portion  will  not  do  anything  which  involves 
much  time  or  effort  on  their  part ;  but  they  will  come  to  a  dinner 
or  luncheon,  or  perhaps  an  outing  or  an  industrial  excursion. 
If  that  is  the  most  you  can  get  them  to  do,  get  them  to  do  that 
—and  then  indulge  in  what  the  military  men  call  "sniping" 
(picking  off  the  exceptional  man  as  he  is  observed  here  and 
there),  the  only  difference  being  that  they  kill  the  man  off,  and 
you,  instead,  make  him  a  "live  one."  Many  valuable  recruits 
for  real,  active  service  on  working  committees  can  be  obtained 
in  this  Avay. 

This  fourth  fundamental  seems  to  me  quite  as  important  as 
any  of  the  other  three  which  I  have '  mentioned — possibly  the 
most  important  of  all.  People  appreciate  things  in  this  world 
very  much  in  proportion  to  the  extent  to  which  they  put  them- 
selves into  those  things.    There  are  in  every  organization  many 


REBUILDING  AN  ORGANIZATION.  239 

men  never  discovered  by  its  management,  who  are  willing,  even 
anxious,  to  do  real  work  if  they  are  given  the  opportunity  to 
tackle  some  object  in  which  they  are  interested,  and  believe 
they  can  produce  results  commensurate  with  the  time  they  put 
into  it.  No  organization  utilizes  more  than  a  fraction  of  the 
"man  power"  available  in  its  membership.  I  have  pointed  out 
only  one  of  many  ways  in  which  men  of  this  character  may  be 
discovered. 

Rebuilding  an  Organization 

By  PAUL  V.  BUNN 

"What  is  a  chamber  of  commerce,  and  what  is  it  for?"  I 
have  tried  to  write  down  one  paragraph,  giving  as  well  as  I  can 
what  the  proper  definition  of  a  "chamber  of  commerce"  should 
be.  "It  is  an  organization  of  business  and  professional  men, 
who,  as  individuals,  believe  in  their  town  and  their  commu- 
nity, and  Avho  are,  therefore,  willing  to  support  the  organiza- 
tion Avith  their  knowledge,  their  personal  service — and  their 
money." 

"A  chamber's  sole  excuse  for  existence  lies  in  doing  the 
greatest  good  for  the  most  people,  in  civic,  commercial,  indus- 
trial production  and  transportation  affairs;  in  rendering  serv- 
ice which  will  help  tlie  community,  whether  it  knows  it  or  not; 
and  in  handling  matters  of  general  interest,  which  ordinarily 
no  individual  Avould  attempt,  and  which  he  could  not  handle 
if  he  should  attempt." 

That  is  what  a  chamber  of  commerce  should  do  in  order 
to  obtain  the  greatest  success.  Now  in  carrying  on  its  work 
any  chamber  is  liable  to  fall  into,  or  unwittingly  drift  into, 
some  sort  of  a  rut,  which  may  impair  its  usefulness  as  a  cham- 
ber, and  that  had  better  be  avoided.  What  are  the  principal 
kinds  of  these  ruts?    I  have  listed  seven  of  them. 

The  first  one  is  that  a  chamber  may  serve  only  a  limited 
group ;  Second,  the  chief  aim  of  a  chamber  may  be  to  pile  up  a 
surplus.  I  do  not  see  that  a  chamber  of  commerce  needs  any 
surplus.  Third,  it  may  have  a  small  income;  its  membership 
(or  contributing  forces)  may  be  "tight-wads"  who  love  incom- 
ing money  but  have  no  respect  for  spent  dollars ;  men  who  pay 
no  attention  to  the  human  element.  Fourth,  it  may  take  biased 
viewpoints  on  all  sorts  of  popular  questions.     Fifth    it  may 


240  METHODS  OF  ORGANIZATION  AND  OPERATION. 

require  all  its  work  done  by  its  office  staff,  instead  of  having 
a  staff  that  gets  its  members  to  work,  thus  educating  them  to 
community  affairs.  Sixth,  it  may  be  merely  a  booster  club, 
shouting  Avhat  a  fine  town  it  has,  whether  it  has  a  fine  town  or 
not;  inducing  industries  to  move  in  regardless  of  their  subse- 
quent fate.    Seventh,  it  may  strive  to  get,  instead  of  to  serve. 

There  may  be  dozens  of  other  ruts,  but  those  to  my  mind 
are  the  principal  ones  that  affect  the  commercial  organization 
that  fails  of  success.  If  these  are  the  worst  ones  and  if  the 
definition  above  given  of  a  real  chamber  of  commerce  is  the  cor- 
rect one,  how  can  we  become  the  one  by  avoiding  the  other. 
Here  is  where  we  leave  the  abstract,  and  get  down  to  the  situa- 
tion as  it  developed  in  St.  Louis.  It  was,  rightly  or  wrongly, 
popularly  held  to  be  a  close  corporation,  run  and  controlled 
by  a  limited  number  of  firms  or  individuals  and  people  were 
becoming  more  and  more  restive  about  it,  and  felt  less  confi- 
dence in  it  as  a  helper  of  their  own  community  affairs.  It  was 
regarded  as  a  self -perpetuating  institution.  It  was  even  pub- 
licly stated  that  one  man  had  named  the  president  for  ten 
years  successively ;  and  it  was  felt  that  the  membership  it  had, 
did  not  have  a  look-in  at  all. 

Democracy  Established 

But,  a  reorganization  followed.  Democracy  was  estab- 
lished. Soon  the  public  began  to  realize  that  the  chamber  doors 
were  wide  open  for  service.  We  moved  into  new  quarters  twice 
as  large  as  the  old,  established  three  new  bureaus:  Member- 
ship, publicity  and  industrial,  the  last  of  which  had  previously 
been  a  part  of  another  department ;  and  we  began  to  deal  with 
important  business  matters  of  the  community — not  political — 
which  hitherto  had  been  deliberately  sidestepped. 

It  may  be  interesting  to  know  something  of  the  traffic  on 
the  Mississippi  River,  for  the  last  28  to  30  years — the  greatest 
body  of  water  in  the  world — that  river  carries  about  one  million 
tons  of  traffic  a  year,  while  the  Rhine,  but  a  fraction  of  its 
length,  far  smaller  in  width  and  draining  far  less  territory, 
carries  Mtj  million.  We  went  to  work  to  revive  that  river  traf- 
fic. We  took  hold  of  it  progressively  with  the  help  of  the  other 
organizations  up  and  down  the  river,  especially  at  New  Orleans. 
Under  the  old  regime  that  would  not  have  been  attempted,  be- 
cause the  railroads  were  against  it. 


\  REBUILDING  AN  ORGANIZATION.  241 

The  next  thing  we  took  up  was  to  remove  the  so-called  "coal 
arbitrary."  We  have  the  biggest  soft  coal  deposits  in  the 
country  just  across  from  St.  Louis  and  the  railroads  have  been 
for  years  hauling  this  coal  from  the  mines  to  East  St.  Louis  for 
$26.00  a  car,  regardless  of  the  distance  from  the  mines,  but  to 
get  that  same  car  hauled  one-half  mile  farther  across  the  river, 
St.  Louis  has  had  to  pay  flO.OO  extra  tribute  money  to  get  that 
coal  across  the  river.  Imagine  fighting  that  proposition.  The 
chamber  took  hold,  and  I  may  state  confidently  that  we  expect 
to  get  a  decision  upon  this  matter  before  the  first  of  the  year. 
It  is  now  before  the  Interstate  Commerce  Commission  with  all 
the  testimony. 

The  next  one  of  this  class  of  ruts  was  a  strike  on  the  street 
railway  system.  The  city  officials  had  done  their  best  to  get  the 
officials  of  the  railway  company  and  their  employees  together. 
They  would  not  speak  together.  The  chamber  got  them  togeth- 
er in  its  offices  about  4 :00  o'clock  one  afternoon,  locked  them 
in,  and  at  10 :00  o'clock  they  came  out  with  an  agreement.  So 
the  public  began  to  see  the  chamber  was  taking  up  things  for 
the  good  of  the  public.  It  was  easier  to  get  members  than  be- 
fore, when  we  had  to  overcome  prejudice  against  our  previous 
association  on  the  part  of  the  people,  who  felt  it  had  not  been 
run  for  the  wider  interests  of  the  city. 

Later  throe  additional  new  bureaus  were  added:  The 
Junior  Chamber  of  Commerce  Bureau,  the  Safety  Council  and 
the  St.  Louis  Furniture  Board  of  Trade.  The  junior  chamber 
is  made  up  of  young  men  eighteen  to  28  years  of  age,  and 
they  are  all  in  business,  all  interested.  The  bureau  has  700 
members,  each  paying  |6.00  yearly  in  dues.  These  young  men 
are  going  to  give  the  chamber  the  material  in  later  years  to 
make  good ;  and,  if  the  chaml)er  does  its  duty  by  them,  they  will 
be  better  business  men. 

The  tendency  of  the  average  man  is  to  think  in  terms  of 
the  individual,  instead  of  in  terms  of  the  community.  We  have 
a  habit  of  mixing  altruism  and  selfishness,  and  the  mixture  is 
not  standardized.  Some  people  are  nearly  100  per  cent  selfish, 
I  am  sorry  to  say,  some  90  per  cent,  70  per  cent,  50  per  cent, 
and  so  on,  down  to  the  few  who  are  100  per  cent  altruistic. 
But  there  are  few  in  that  class.  It  is  an  unfortunate  fact  that 
it  is  always  the  minority,  the  few,  that  will  take  action  in  a 
way  that  will  benefit  the  community  regardless  of  their  own 
personal  interest. 


242  METHODS  OF  ORGANIZATION  AND  OPERATION. 

It  is  easy  to  find  good  arguments  in  favor  of  the  thing 
which  means  dollars  to  us.  That  is,  perhaps,  one  of  the  rea- 
sons why  the  average  chamber  of  commerce  has  only  twenty  to 
30  per  cent  of  the  population  who  should  be  eligible  pros- 
pects. And  many  of  those  that  do  join  the  chamber  are  under 
a  misapprehension.  They  think  that  as  soon  as  they  sign  their 
cards  they  are  going  to  get  some  business  from  the  chamber, 
so  that  the  profits  from  that  business  will  pay  for  the  dues  in 
the  chamber,  and  when  they  find  that  out,  they  become  among 
those  that  furnish  a  large  percentage  of  membership  losses. 
Perhaps  that  is  not  true,  but  that  class  furnishes  a  large  pro- 
portion of  lapses  in  membership. 

The  Selfish  Member 

A  man  came  into  my  office  the  other  day  and  said :  "I  am 
not  going  to  renew  this  membership,  because  I  don't  get  enough 
printing  from  you.  I  have  got  to  have  enough  printing  from 
you  to  pay  for  my  membership,  in  order  to  keep  it  up.'' 

"Write  out  your  resignation,"  I  said.  He  began  to  see 
light,  and  came  back.  It  showed  the  trend  of  his  mind.  He 
wanted  a  fcAV  hundred  dollars'  worth  of  printing  trade,  to 
make  fifty  dollars'  worth  of  profit  to  take  care  of  his  member- 
ship dues. 

Real  production  is  confined  to  products  of  the  soil,  and 
the  waters,  and  the  mines,  and  the  forests.  Everything  used 
has  got  to  come  from  those  sources.  If  a  man  manufactures 
axes,  he  must  have  the  raw  ore  to  make  them  from ;  if  he  manu- 
factures cloth,  he  must  have  the  raAv  cotton,  raised  in  the  field 
and  picked  and  ginned,  in  order  to  make  his  product.  Many 
times  this  manufacturer  is  liable  to  think  he  is  a  producer,  but 
he  is,  in  fact,  a  transformer.  Likewise  the  man  who  distributes, 
the  wholesale  hardware  merchant,  or  the  jobber  who  sells  the 
axes  or  the  cloth  to  the  retailer,  may  get  the  idea  into  his  head 
that  he  is  producing  something,  when  he  is  in  reality  only  a 
distributor  of  the  products  of  the  soil,  the  mines  and  the  for- 
ests, put  into  shapes  which  he  can  sell  to  retailers  and  con- 
sumers. Our  banks  with  their  millions  of  resources — what  do 
they  produce?  Nothing.  They  loan  you  money ;  establish  debits 
and  credits  on  slips  of  paper.  But  if  it  were  not  for  the  pro- 
ducer, they  would  go  out  of  business,  all  of  them. 

We  must  teach  the  producer  he  must  do  things  better  than 


REBUILDING  AN  ORGANIZATION.  243 

he  has  done  before;  and  he  must  no  longer  ignore  the  sources 
of  supply.  When  production  ceases,  our  business  ceases. 
When  production  is  low,  our  business  is  low.  The  manu- 
facturer and  distributor  will  have  nothing  to  manufac- 
ture and  distribute ;  the  transformer  nothing  to  transform,  and 
our  bankers^  debits  and  credits  become  worthless  scraps  of  pa- 
per. Cities  live  and  trade  upon  the  surplus  of  the  producer. 
Down  at  Wall  Street  they  trade  on  the  surplus  made  by  our 
producers  over  and  above  what  they  and  their  families  require. 
That  is  all  Ave  have  to  trade  on. 

Why  dilate  on  this  point?  Simply  because  we  are  talking 
about  re-building  an  organization,  and  that,  among  others,  is  a 
thing  we  have  got  to  take  an  interest  in.  Rebuilding  an  or- 
ganization depends  on  getting  the  right  idea  of  things  and  sell- 
ing that  idea  to  your  community  as  an  important  thing  to  be 
done.  That  is  a  great  deal  better  than  going  around  begging 
a  man  to  join  your  local  chamber  because  you  want  him  to. 
That  is  the  poorest  reason  in  the  world  Avhy  any  man  should  be 
asked  to  join  a  chamber  of  commerce ;  as  S.  C.  Mead  said :  "All 
membership  work  is  worse  than  fatal,  unless  you  have  the 
goods  to  deliver ;  unless  you  have  an  organization  that  is  doing 
things,  and  upon  the  basis  of  the  new  membership  and  the  rev- 
enue derived  therefrom,  will  continue  to  do  things  that  are 
worth  while  and  useful  to  your  community.''  It  is  a  question  of 
salesmanship ;  and  the  best  salesmanship  is  that  which  sells  the 
customer  what  he  really  needs. 

We  have  not  tried  the  intensive  campaign.  But  we  have 
been  working  along  the  lines  of  the  "still  hunt"  campaign  ever 
since  I  have  been  there.  We  have  a  membership  board,  and  w^e 
got  a  heavyweight  member  of  the  board  to  take  the  chairman- 
ship of  the  membership  committee — a  man  interested  in  it, 
and  wiio  could  afford  to  devote  some  time  to  it.  We  hired  a 
live  wire,  a  good  mixer.  We  put  a  hundred  selected  men  on 
the  committee,  many  of  them  good  salesmen,  men  who  Avant  to 
increase  their  acquaintance.  A  goodly  per  cent  are  insurance 
men,  real  estate  salesmen,  etc.  Then,  time  and  money  were 
spent  on  preparing  a  list  of  three  thousand  prospects.  These 
were  listed  on  cards,  arranged  by  location,  all  in  one  buildinj?, 
or  one  block  being  assorted  together.  About  fifteen  to  thirty 
people  meet  at  the  chamber  every  Tuesday  morning,  jjet  fifteen 
to  tAventy  cards,  and  go  out  in  two-men  teams.  At  12 :30  they 
meet  at  a  complimentary  luncheon  and  compare  results. 


244  METHODS  OF  ORGANIZATION  AND  OPERATION. 

We  kept  that  up  for  days,  and  on  no  day  did  we  get  less 
than  ten.  We  gained  453  net  memberships  last  year ;  this  year 
we  have  gained  thus  far  847  memberships.  Our  net  member- 
ship stands  today  at  3,521,  Avhich  is  a  net  gain  of  1,300  in  23 
months.  That  would  give  a  yearly  increase  of  |65,000  in  rev- 
enue. We  deduct  ten  per  cent  in  figuring  here,  although  that  is 
too  much.  The  total  number  of  new  members  to  get  that  gain, 
since  January,  1917,  was  1,958.  That  is  the  number  we  have 
brought  in  in  23  months.  Our  total  losses  of  all  kinds  since 
January,  1917,  were  658,  though  it  was  said  at  the  time  we 
changed  the  policy  of  the  chamber,  that  we  would  lose  over  a 
thousand  members. 

Service — Great  and  Small 

All  these  big  things,  these  big  campaigns — all  these  big 
things  that  you  can  do,  are  good  and  necessary ;  but  don't  make 
the  mistake  of  thinking  that  public  approval  is  not  swayed 
as  much  or  more  by  little  personal  services  as  by  the  big  things. 
If  you  tell  a  man  you  have  raised  ten  million  dollars  in  a  tu- 
berculosis campaign,  that  is  fine ;  but  if  you  stop  his  tooth  ache 
he  appreciates  that  more  than  he  does  your  success  in  your 
tuberculosis  campaign.  When  after  three  }■  ears'  work,  we 
rectified  the  5  per  cent  freight  discrimination  against  St.  Louis, 
people  realized  we  w^ere  getting  on.  But  one  canner  who  had 
vainly  looked  several  days  for  a  lost  car  of  empty  cans,  while 
his  fruit  was  about  to  spoil,  thought  much  more  of  our  service 
when  we  found  the  car  and  placed  it  at  his  door,  six  hours  after 
he  told  us  of  it. 

When  another  firm  got  a  dozen  bales  of  furs  from  Japan 
at  5 :00  P.  M.  Saturday,  and  had  to  have  those  tags  translated 
in  two  hours,  they  appreciated  the  fact  that  we  did  it  for  them, 
perhaps  even  more  than  they  appreciated  the  revival  of  traffic 
on  the  river,  or  the  removal  of  the  "coal  arbitrary.''  A  man 
came  into  the  chamber  the  other  day.  He  had  been  a  member 
for  a  year.  "I  want  to  take  out  a  membership  for  my  secre- 
tary," he  said.  "That  man  who  takes  care  of  me  at  the  door 
treats  me  so  politely  and  courteously,  that  I  feel  that  I  would 
like  my  secretary  to  enjoy  the  privileges  of  such  a  chamber  as 
well  as  myself."    See  what  a  little  thing  like  that  will  do. 

That  is  the  whole  story ;  and  you  get  my  point :  That  no 
matter  what  else  you  do,  you  must  go  after  the  things  that  will 


REBUILDING  AN  ORGANIZATION.  245 

meet  the  needs,  that  will  meet  the  approval  of  the  people.  Go 
after  them  sincerely,  get  rid  of  all  class  distinction.  Work  for 
the  community  first  and  the  individual  second.  Keep  out  of 
politics,  but  in  business  matters  shoot  with  a  rifle,  and  not 
with  a  blunderbuss.  Make  your  organization  democratic,  and 
make  your  public  feel  you  are  there  to  render  them  service. 


CHAPTER  XV. 
Organization  Publicity 

Keeping  Before  the  Public 
By  WM.  B.  WREFORD 

The  chances  are  that,  if  an  average  bright  newspaper  man 
got  access  to  the  work  of  such  an  organization,  he  would  have 
discussed  the  subject  matter  of  the  ponderous  prepared  article 
with  a  dozen  lines,  or  at  least  not  gone  farther  than  to  make 
it  the  text  of  a  dozen  or  more  periodical  paragraphs.  In  the 
case  of  either  treatment,  note  the  difference  in  the  result :  The 
dozen  printed  paragraphs  would  have  been  breezy  and  would 
have  been  read,  where  the  ponderous  article  would  have  been 
overlooked.  The  dozen  printed  paragraphs  would  have  kept 
the  work  of  the  organization  before  the  public  for  a  dozen  days, 
where  the  heavy  article  would  not  have  held  attention  for  a 
single  day. 

The  trade  of  journalism  is  one  which  lives  on  personality. 
To  begin  with,  the  free-masonry  that  exists  between  man  and 
man  engaged  in  its  pursuit  is  perfect.  No  journalist  falls  so 
far  from  grace  as  to  entirely  forfeit  the  sympathy  of  the  more 
orderly  members  of  the  profession.  No  callow  youth  struggling 
to  mount  the  ladder  of  journalistic  fame  is  so  crude  or  so  un- 
certain of  future  that  some  of  his  fellows  do  not  lend  him  a 
helping  hand.  No  man  or  w^oman  who  has  made  good  in  the 
profession  goes  out  of  it  to  another  sphere  of  activity  that  the 
good-will  of  his  fellows  does  not  follow  him,  and  magnify  his 
virtues  and  overlook  his  mistakes.  The  hardest  critics  in  the 
world,  the  journalists,  are  the  kindest  observers  of  the  work 
of  their  own  fellows. 

Recognizing  this,  commercial  organizations  can  do  their 
best  work  by  going  into  the  profession  of  journalism  for  occu- 
pants of  some  of  the  places  at  their  disposal,  for  men  who  are 
in  active  touch  and  have  personal  friendship  with  those  whom 
they  leave  behind  them  at  the  newspaper  desks  and  typewriters, 

246 


KEEPING  BEFORE  THE  PUBLIC.  247 

and  who  can  get  desirable  publicity,  where  the  solemn  old  dad- 
dies who  used  to  make  publicity  could  not  get  a  hearing. 

An  Official  Mouthpiece 

The  publicity  work  of  a  commercial  organization  should 
be  solely  the  work  of  one  man — he  should  be  the  mouthpiece 
of  the  institution,  not  necessarily  quoting  liimself,  but  the 
president  or  chairman  of  a  committee  or  the  secretary,  or  who- 
ever fits  the  case  the  best. 

The  local  newspaper,  say  w^hat  one  will,  is  the  most  gen- 
erous contributor  to  town  building  that  an  organization  has  at 
its  disposal.  It  has,  or  should  have,  a  selfish  interest  in  the 
growth  of  its  city.  A  bigger  city  means,  apart  from  the  grati- 
fication of  honest  local  patriotism,  the  more  material  satisfac- 
tions of  a  greater  body  of  readers,  bringing  with  it  a  better 
appeal  to  advertisers,  and  a  greater  recompense  from  such  ap- 
peals. The  newspaper  receives  one  of  the  promptest  of  the 
rewards  from  the  growth,  in  that  every  newcomer  to  one's  city 
represents  a  penny  or  two  a  day  for  the  publication. 

Moreover,  journalism  has  high  ideals.  It  has  been  striv- 
ing for  better  citizenship,  more  honest  government ;  greater  ad- 
vantages, material  and  moral,  long  before  our  commercial  or- 
ganizations were  born.  Well  organized  commercial  associa- 
tions come  into  being,  therefore,  as  handmaids  of  journalism 
in  the.  achievement  of  its  ideals  and  are  welcomed  by  it,  be- 
cause they  represent  the  organized  assistance  of  the  commu- 
nity in  bettering  its  own  material  and  moral  conditions.  These 
are  among  the  reasons,  practical  and  ideal,  why  the  commer- 
cial organization,  which  is  to  succeed,  must  seek  and  secure 
the  cooperation  of  the  press  in  its  development  and  in  keeping 
it  before  the  public. 

Keeping  Before  the  Public 

I  have  referred  to  being  kept  before  the  public.  Let  us 
analyze  the  necessity.  A  hermit  will  never  make  a  politician. 
A  bird  that  sits  on  the  nest  all  the  time  will  never  get  a  repu- 
tation for  the  beauty  of  its  plumage  or  the  sweetness  of  its 
warble.  The  article  of  commerce  that  waits  until  its  merits 
are  passed  around  by  those  who  use  it,  without  advertising  its 
merits,  will  never  make  its  producer  a  millionaire.  Success 
cept  burglary.  So  the  success  of  a  commercial  organization 
and  publicity  are  interchangeable  terms  in  every  business  ex- 


248  METHODS  OF  ORGANIZATION  AND  OPERATION. 

]ies  in  its  being  able  to  so  conduct  itself  that  its  journalistic 
friends  will  find  in  its  activities  constant  text  for  keeping  it 
before  the  public. 

Advertising  Methods  of  Commercial 
Organizations 

By  FRED  CLAYTON  BUTLER 

The  charge  has  been  made  that  commercial  organization 
publications  survive  but  a  short  time.  This  is  disproved  by  the 
fact  that  practically  all  of  the  publications  mentioned  in  the 
report  of  1914  of  this  committee  are  still  in  existence  and  fully 
twenty-five  per  cent  more  have  been  started  during  the  past 
year.  It  will  be  noticed,  by  referring  to  the  exhibits,  that  many 
of  these  publications  are  in  their  fourth,  fifth,  sixth  and  even 
ninth  and  tenth  volumes. 

While,  almost  without  exception,  executives  now  issuing 
house  organs  are  strongly  of  the  opinion  that  they  are  read  and 
appreciated  by  the  membership,  yet  of  course  no  one  is  able  to 
advance  complete  and  definite  proof.  Complaints  from  mem- 
bers failing  to  receive  copies,  suggestions  regarding  the  work 
mentioned  in  the  publication  and  numerous  and  hearty  expres- 
sions of  approval  and  interest  on  the  part  of  the  members,  have 
convinced  executives  that  the  house  organ  is  filling  a  definite 
need.  Stevens  of  Akron  reported  a  poll  which  showed  'that  a 
large  majority  of  the  members  read  the  publication. 

The  large  and  constantly  growing  number  of  house  organs 
issued  by  organizations  is  in  itself  an  acknowledgment  of  their 
need.  In  the  largest  cities  the  necessity  of  such  a  publication 
is  so  obvious  as  to  need  no  detailing  here.  Such  organizations 
have  large  memberships,  but  a  small  portion  of  which  can  be 
brought  into  the  activities  of  the  work.  The  fields  of  effort  are 
so  numerous  and  so  widespread  as  to  make  any  adequate  men- 
tion of  them  in  the  daily  press  impossible.  In  fact,  the  mere 
recital  of  the  work  undertaken  and  accomplished  by  a  large 
organization  makes  a  magazine  in  itself. 

Accepting  as  a  basic  premise,  therefore,  that  the  success- 
ful organization  must  continually  keep  before  its  membership 
the  story  of  what  it  is  doing  and  trying  to  do,  we  must  admit 

Committee:     Fred  Clayton  Butler.  Chairman;  Thorndike  Deland,  A.  V. 
Snell,  Ho\^^rd  Strong,  O.  B.  Towne. 


ADVERTISING  METHODS  OF  COMMERCIAL  ORGANIZATIONS.  249 

that  the  publication  of  a  house  organ  by  associations  in  the 
larger  cities  is  justified  from  every  viewpoint.  The  question 
for  discussion,  consequently,  is  whether,  in  the  smaller  cities 
where  almost  unlimited  newspaper  publicity  is  available,  the 
the  publication  of  a  house  organ  by  commercial  associations  is 
advisable. 

House  Organ  Contents 

Without  exception,  I  believe,  all  publications  regardless  of 
size  contain  the  work  of  the  organization.  Some  contain  noth- 
ing else,  while  others  contain  items  and  articles  on  business, 
civics  and  trade  organization. 

In  the  choice  of  suitable  contents  for  a  house  organ,  opin- 
ion differs  widely.  Gibbs  of  Olean  believed  a  publication  should 
contain  "clear  and  concise  statements  in  regard  to  work  being 
done  by  the  organization,  a  few  well-selected  items  in  regard 
to  what  others  are  doing  and  a  few  articles  which  tend  to  create 
civic  patriotism.^'  Wadsworth  of  Youngstown  used  local  in- 
dustrial news  (not  reprinted  but  worked  up  especially),  re- 
ports of  committee  activities,  appeals  for  cooperation  of  mem- 
bers in  the  larger  current  activities,  and  notes  on  w^hat  other 
cities  are  doing.  He  believed  that  "members  will  not  read 
through  duty.  The  publication  must  compete  in  pure  interest 
with  other  reading  matter  received.'' 

Weller  of  Erie  added  that  "a  small  portion  of  humor  and 
epigrams  or  short,  snappy  quotations"  are  necessary  to  make  a 
publication  readable,  but  Foss  of  Springfield  thought  the  con- 
tents should  be  limited  to  "activities  of  the  organization,  mat- 
ters of  special  interest  to  its  members,  and  the  welfare  of  the 
town,  presented  in  a  simple,  direct  and  dignified  manner,  omit- 
ting jokes  and  poetry  of  doubtful  literary  merit." 

Lovelace  of  Danbury  believed  in  "laying  emphasis  upon 
what  other  cities  are  doing,"  while  Holmes  of  Sioux  City  raised 
an  objection  to  this:  "I  notice  that  many  of  the  commercial 
organizations  are  devoting  a  large  amount  of  space  in  the  house 
organs  to  quotations  from  the  writings  and  sayings  of  other 
commercial  secretaries  and  presidents — some  of  them  very  clev- 
er and  pretty.  But  it  is  my  judgment,  based  on  such  observa- 
tion as  an  old  time  new^spaper  man  could  give,  that  the  aver- 
age commercial  club  member  is  not  particularly  interested  in 
platitudes  on  what  the  Podunk  Board  of  Trade  is  doing."  There 
is  a  point  in  publishing  what  other  organizations  are  doing. 


250  METHODS  OF  ORGANIZATION  AND  OPERATION. 

however,  that  is  missed  by  Mr.  Holmes.  This  was  well  brought 
out  in  a  recent  article  in  "Town  Development"  by  Frederick 
W.  Bender  from  which  I  quote : 

The  commercial  organization  journal  has  a  two-pronged  purpose — first  to 
acquaint  the  membership  with  what  is  being  done  and  second,  to  prepare  the 
minds  of  the  members  for  the  things  that  are  to  be  done.  It  is  a  "little  mes- 
sage" that  drops  into  an  office  every  little  while  and  plants  a  thought  in  the 
mind  of  the  member,  doing  so  regularly,  approaching  the  matter  from  a  little 
different  angle  each  time,  until  the  member  as  a  result  of  this  persistent 
thought  suggestion,  comes  around  to  a  meeting  and  advocates  the  carrying 
out  of  the  particular  "suggested"  project. 

A  commercial  executive  of  many  years'  experience  in  commercial  organi- 
zation work  recently  stated :  "I  question  the  advisability  of  ever  making  a 
direct  statement  to  your  membership  about  any  measure  which  you  propose 
to  carry  out,  especially  w^here  that  particular  measure  means  a  departure 
from  the  usual,  without  first  preparing  the  minds  of  the  memberships  and  the 
community  for  the  thing  you  propose  doing. 

Experienced  executives  generally  agree  that  about  90  per  cent  of  the  com- 
mercial organization  projects  that  fail  to  materialize  and  are  lost  on  the 
"table"  could  have  been  saved  and  made  realities  by  preparation.  As  one 
executive  recently  put  it,  "plant  the  thought  and  then  assiduously  irrigate 
it."  The  membership  and  community  mind  must  understand  and  appreciate 
a  thing  before  it  can  desire  it — desire  always  comes  from  appreciation  and 
understanding. 

Such  publications  as  "Chicago  Commerce"  and  "Greater 
New  York"  of  the  Merchants'  Association,  go  further  than 
purely  organization  news  and,  in  the  w^ords  of  Mr.  Mead,  "en- 
deavor to  keep  the  members  informed  of  important  events  af- 
fecting their  business,  and  to  arouse  interest  in  the  city  and  its 
welfare."  Many  other  organizations  devote  considerable  space 
in  their  publications  to  a  summary  of  news  regarding  the  pure- 
ly commercial  features  of  their  Avork,  such  as  credits,  traffic, 
exports,  etc. 

Question  of  Make-Up 

In  the  matter  of  make-up  there  are  also  two  different 
schools — the  magazine  and  the  newspaper.  The  preponderance 
of  opinion  seems  to  rest  with  the  newspaper  style  for  reasons 
logically  set  forth  by  Hillweg  of  Minneapolis  from  whom  I 
quote : 

"For  two  years  we  published  our  bulletin  as  a  small  maga- 
zine attractively  printed.  We  felt,  however,  that  it  was  failing 
in  its  purpose  of  keeping  the  members  advised  of  the  activities 
of  the  association.  We  finally  reached  the  conclusion  that  a 
bulletin  prepared  in  newspaper  form  should  accomplish  the 
result  desired.     We  reasoned  that  because  of  the  likeness  of 


ADVERTISING  METHODS  OF  COMMERCIAL  ORGANIZATIONS.  251 

our  bulletin  to  a  newspaper,  the  member  would  be  less  inclined 
to  cast  it  aside  to  be  read  at  some  later  date.  The  first  issue 
of  the  bulletin  in  the  new  form  brought  all  the  proof  we  de- 
sired of  its  acceptance  by  our  members.  While  economy 
played  no  part  in  our  change,  we  find  that  the  new  form  is 
both  more  effective  and  cheaper  than  the  old." 

Mr.  Mead  also  pointed  out  that  "the  advantage  of  the  news- 
paper form,  lies  in  the  fact  that  it  enables  the  editor  to  present 
the  news  in  a  w^ay  that  is  familiar  to  newspaper  readers.  It 
also  makes  possible  a  lively  tone  which  cannot  so  well  be  in- 
jected into  the  magazine  form." 

Casey  of  Haverill  recommended  "keeping  the  articles  down 
in  size;  making  them  short  but  snappy,  in  newspaper  style, 
readable  and  as  interesting  as  possible.'-  While  all  seem  to 
agree  that  the  articles  should  be  "lively  and  interesting"  it 
should  not  be  forgotten  that  to  write  such  articles  is  a  diffi- 
cult art.  Unless  great  care  is  taken,  the  tendency  is  toward 
flippancy  which  sooner  or  later  degenerates  into  the  insane 
piffle.  There  is  no  doubt  that  members  like  to  read  clever 
"joshing"  stories  such  as  are  often  seen  regarding  trips  and 
cruises  and  the  more  social  events  of  organization  work,  but 
the  temptation  to  carry  this  too  far  should  be  religiously  re- 
strained. 

Hillweg  of  Minneapolis  "found  it  easy  and  highly  desirable 
to  use  illustrations  in  this  form  of  bulletin,"  and  also  found 
that  "it  is  possible  to  epitomize  in  the  head-lines  all  essential 
points  of  our  work  and  thus  impress  the  record  of  activities 
upon  the  man  who  reads  nothing  but  head-lines."  This  is  an 
important  point.  In  the  smaller  'publications  especially,  tlie 
tendency  is  noticeable  to  avoid  long  stories  and  to  break  an 
article  if  necessary  into  several  small  stories  each  with  a  head 
so  that  he  who  runs  may  read. 

The  objection  that  the  small  organization  will  not  iiave 
enough  fresh  copy  for  a  regularly  issued  house  organ  does  not 
seem  to  be  a  convincing  one  in  the  opinion  of  most  executives. 
In  fact,  some  point  out  that  a  regular  publication  is  in  itself 
an  incentive  to  keep  the  organization  at  a  high  pitch.  TJie 
executive  finds  himself  "trying  to  make  bogie"  as  it  were,  and 
unconsciously  spurs  up  the  entire  organization  when  he  thinks 
of  that  monthly  resume  of  activities  which  must  be  made. 
Some  executives  seem  to  feel  that  it  is  necessary  for  them  to 


252  METHODS  OF  ORGANIZATION  AND  OPERATION. 

publish  in  the  house  organ,  matter  which  is  distinctly  news 
and  w  hich  has  not  yet  appeared  in  print.  Others  point  out  that 
this  isi  a  false  view  and  that,  as  a  matter  of  fact,  in  the  small 
cities  at  least,  nothing  should  be  withheld  from  the  press  in 
order  to  make  news  for  the  house  organ.  Therefore,  entirely 
regardless  of  whether  or  not  the  organization  activities  have 
already  appeared  in  the  newspapers,  they  should  be  printed  in 
the  organization  publication.  Members  do  not  read  the  news- 
papers thoroughly  and  even  though  they  did,  the  effort  of  a  re- 
peated recapitulation  of  the  organization's  work  is  far  more 
impressive  and  lasting  than  the  mere  perusal  of  occasional  news- 
paper stories. 

Frequency  of  Publication 

In  regard  to  the  frequency  of  publication,  opinion  is  pretty 
w^ell  settled  upon  the  desirability  of  a  weekly  for  the  larger 
organizations  for  reasons  which  are  clearly  pointed  out  by  Mr. 
McKibben :  "It  appears  four  times  as  often  and  therefore  has 
four  times  the  opportunity  to  make  an  impression.  In  report- 
ing chamber  events  and  happenings,  the  weekly,  being  nearer 
to  the  event,  can  give  a  more  effective  news  touch  to  its  story 
than  the  tardy  monthly.  Each  event  can  be  told  about  more 
fully  and  can  be  brought  to  the  attention  of  your  members  more 
effectively,  for  you  only  have  to  cover  one-quarter  as  many 
events  as  you  would  have  to  cover  in  the  monthly.  The  weekly 
enables  you  to  give  more  accurate  and  timely  information  as  to 
those  events  which  could  be  covered  by  a  monthly,  and  enables 
you  to  give  notice  of  many  events  which  could  not  be  covered 
by  a  monthly — for  it  is  impossible  for  a  busy,  working  organi- 
zation to  make  up  a  full  and  accurate  schedule  of  coming  events 
a  month  ahead.  In  organization  work  the  newspaper  is  more 
valuable  than  the  magazine — and  the  weekly,  appearing  more 
often  than  the  monthly,  lends  itself  more  naturally  to  news- 
paper style." 

Should  Advertising  Be  Admitted? 

In  this  matter  of  advertising  we  find  the  two  schools  of 
thought  most  definitely  marked.  Here  there  are  no  half-way 
opinions.  Executives  either  believe  in  securing  advertising  or 
they  do  not.  Needless  to  say  those  organizations  that  are  now 
publishing  advertisements  believe  in  that  policy.  Of  those  who 
do  not  accept  advertising  all  but  a  few  condemii  the  practice. 
The  lines  are  so  sharply  drawn  that  all  that  can  be  done  in  this 


ADVERTISING  METHODS  OF  COMMERCIAL  ORGANIZATIONS.  253 

paper,  is  to  present  the  two  sides  fairly  and  leave  the  individual 
to  his  own  decision. 

While  many  executives  believe  with  Cotton  of  Providence 
that  "the  presence  of  advertising  matter  in  the  publication 
renders  it  more  valuable/'  and  while  they  honestly  believe  with 
him  that  "any  and  all  advertisers  will  eventually  get  their 
money's  worth  if  they  supply  the  right  sort  of  copy  and  deliver 
the  quality  of  goods  they  advertise,"  yet  it  should  not  be  over- 
looked that  if  advertising  brought  no  revenue  there  would  be 
none  printed.  Consequently  the  question  resolves  itself  into 
one  of  ethics — whether  or  not  a  civic-commercial  organization 
is  justified  in  using  its  publications  for  profit.  Many  execu- 
tives contend  that  an  organization  has  no  more  right  to  seek 
a  revenue  in  this  field  than  in  any  other  of  its  various  activi- 
ties. 

That  advertising  is  an  important  factor  is  shown  by  the 
fact  that  many  organizations  report  an  income  equal  to  as 
high  as  75  per  cent  of  the  cost  of  the  publication,  a  few  like  ti:e 
Milwaukee  Association  of  Commerce  make  "one  pay  the  other," 
and  some  pay  the  entire  cost  of  publication  with  a  profit  be- 
sides. 

One  of  the  strongest  arguments  against  advertising  is  that 
most  commercial  organizations  are  today  supervising  the  ad- 
vertising propositions  presented  to  their  members.  Most  such 
organizations  would  refuse  to  sanction  the  solicitation  of  ad- 
vertising for  a  publication  issued  by  any  other  local,  civic,  fra- 
ternal or  business  organization.  Howe  of  Utica  said:  "As  a 
chamber  we  are  absolutely  opposed  to  organ  advertising,  as  we 
consider  it  a  species  of  additional  mulcting  of  our  members. 
Having  a  circulation  of  1,000  members  we  have  had  applica 
tions  from  banks  and  other  sources  for  advertising  space,  but 
have  universally  turned  them  down.  My  personal  view  of  many 
of  the  organs  that  come  here  is  that  the  money  is  wasted;  in 
fact,  I  cannot  see  how  different  chambers  put  over  the  adver- 
tising they  do.  I  make  this  point  because  I  believe  it  is  im- 
possible to  give  such  circulation  to  these  publications  as  will 
justify  the  advertising.  Without  any  hesitation  I  may  say  that 
we  could  get  advertising  enough  in  this  city  to  pay  for  an  elab- 
orate organ  if  we  desired  it  but  as  one  of  the  aims  of  the  cham- 
ber at  the  present  time  is  to  cut  down  the  enormous  waste  of 
money  given  hit  or  miss  to  different  soliciting  agencies,  we 


254  METHODS  OF  ORGANIZATION  AND  OPPJRATION. 

feel  that  we  would  not  be  justified  in  joining  the  ranks  of  such 
agencies — far  better  a  one-sheet  bulletin.'' 

Assistant  Secretary  McCarthy  of  Duluth  was  of  a  similar 
opinion.  "We  endeavor  to  protect  our  members  from  special 
advertising  media  and  the  club  publication  is  one  such.  The 
advertising  is  also  an  additional  tax.  It  decreases  the  value 
by  making  it,  not  a  special  message  to  the  member,  but  a  com- 
mercial proposition.  A  monthly  bulletin  large  enough  to  get 
into  a  No.  10  envelope  can  carry  a  lot  of  news  and  inexpensive 
enough  for  any  organization  worthy  to  be  classed  as  alive.'- 

Deuble  of  Canton  believed  that  ''sl  house  organ  is  primarily 
a  factor  of  information  rather  than  commercial  exploitation  and 
should  not  carry  advertising  to  be  of  the  greatest  effect  in  its 
real  mission  to  the  members.  A  house  organ  is  in  the  nature  of 
a  confidential  communication  to  the  membership  and  should 
not  tell  them  where  to  buy  underwear  or  plumbing  at  the  same 
time.  This  practically  makes  advertising  a  donation  to  the 
associations,  because  the  writer  has  never  experienced  any  re- 
turn from  such  advertising  for  others,  in  seven  years'  advertis- 
ing management.  It  also  would  appear  very  similar  to  the 
souvenir  books  and  programs  which  advertising  is  generally 
condemned  by  conservative  advertisers  as  valueless  from  a  busi- 
ness standpoint  and  appreciated  only  by  the  exploiting  mana- 
gers." 

In  the  matter  of  advertising  "Chicago  Commerce"  has  taken 
the  middle  ground.  Mr.  Miller  Avrites :  "The  paper  is  not  self- 
sustaining  and  could  not  be  made  so  without  carrying  a  much 
larger  amount  of  advertising  than  we  now  carry.  It  is  the 
opinion  of  some  of  the  officers  of  the  association  that  the  paper 
should  carry  no  advertising  whatever ;  others  believe  we  should 
carry  enough  advertising  to  pay  expenses,  and  we  have  fallen 
into  the  habit  of  taking  the  middle  course  between  the  tAvo  ex- 
tremes, and  accept  such  advertising  as  comes  to  us  without 
much  effort  on  our  part." 

A  few  organizations,  like  the  New  Orleans  Association  of 
Commerce  have  refused  to  permit  the  soliciting  of  advertising 
on  the  ground  that  the  association  was  not  in  the  advertising 
business.  The  Merchants'  Association  of  New  York  decided 
not  to  accept  advertising  and  Mr.  Mead  explains  that  "the 
chief  reason  for  this  decision  was  that  a  publication  without 
advertising  would  be  more  dignified  and  would  make  it  possible 


ADVERTISING  METHODS  OF  COMMERCIAL  ORGANIZATIONS.  255 

to  display  the  news  of  the  association  to  greater  advantage. 
Other  considerations  are  the  danger  of  making  members  feel 
that  they  are  being  asked  to  pay  more  than  their  yearly  regu- 
lar dues  for  the  support  of  their  association,  and  the  possibil- 
ity that  the  newspapers  might  feel  that  the  association  was  en- 
croaching upon  their  field." 

Important  As  Means  of  Comniunication 

A  word  in  regard  to  expense:  Any  organization  that  can 
afford  to  issue  a  year  book  could  much  better  put  the  same 
amount  of  money  in  some  sort  of  a  house  organ.  An  annual 
report  is  as  a  rule  merely  glanced  through  and  laid  to  one  side. 
A  house  organ  appears  repeatedly  and  is  effective  through  its 
very  persistence.  A  four  page  journal  6x9  can  be  printed  for 
as  low  as  $17.00  monthly.  The  postage  need  not  be  considered, 
as  the  publication  will  take  the  place  of  miscellaneous  notices 
which  would  average  once  monthly.  For,  to  quote  Babcock 
of  Dallas  again,  "In  case  an  organization  cannot  issue  a  regu- 
lar publication,  a  monthly  report  in  the  way  of  letters  to  mem- 
bers is  absolutely  necessary  to  keep  the  organization  members 
in  touch  with  what  is  going  on." 

To  quote  Editor  Gushing  of  "The  Detroiter,"  "The  publica- 
tion saves  the  board  many  hundreds  and  even  thousands  <^>f 
dollars  by  making  it  unnecessary  to  send  out  notices  of  our 
Tuesday  meetings;  inasmuch  as  we  have  between  30  and  10 
Tuesday  meetings  a  year,  heretofore  it  was  necessary  to  send 
out  printed  literature  to  each  member,  all  of  which  is  now  taken 
care  of  by  "The  Detroiter,"  and  the  saving  is  quite  a  large  one.'* 

A  writer  in  a  current  magazine  recommends  the  use  of  a 
Aveekly  post  card  in  lieu  of  a  publication.  In  doing  so,  he  over- 
looks the  fact  that  the  matter  of  postage  would  be  by  far,  the 
greatest  item  of  expense  and  that  four  or  five  post  cards  month- 
ly to  a  mailing  list  of  fifteen  hundred  would  cost  far  more  than 
a  well  printed  and  illustrated  publication  of  at  least  eight 
pages.  This  writer's  recommendation  does  not  justify  his  con- 
clusion that  "the  official  organ  is  a  costly  method  of  publicity 
in  the  long  run." 

The  journal  can  be  enclosed  with  bills  and  statements  and 
in  this  way  the  matter  of  postage  practically  eliminated.  As  a 
rule  second  class  rates  are  out  of  the  question  for  small  cities, 
as  they  apply  only  to  weeklies. 


256  METHODS  OF  ORGANIZxVTION  AND  OPERATION. 

There  is  one  form  of  house  organ  that  can  be  issued  with- 
out cost  that  have  given  good  results  in  Winona,  Joliet  and 
Minot.  This  is  to  arrange  with  the  newspapers  to  publish  on  a 
certain  day  each  week  under  a  distinctive  heading  in  a  certain 
location  of  the  paper,  exactly  the  same  material  that  would 
ordinarily  be  published  in  a  house  organ.  The  advantages  are 
that  all  the  citizens  are  kept  in  touch  with  the  work  of  the  or- 
ganization and  not  merely  the  members  alone.  The  disadvan- 
tages are  that  people  as  a  rule  read  their  newspapers  hurriedly 
and  skip  over  undisplayed  matter.  There  is  also  the  disad- 
vantage of  handling  a  story  as  a  re-write  that  has  already  ap- 
peared as  a  news  story  in  another  column  of  the  same  paper. 

Hollenga  of  Minot  is  using  this  plan  daily.  Not  only  does 
he  inform  his  members  of  what  is  going  on,  but  he  also  gives 
little  write-ups  about  interesting  happenings  in  other  cities — 
in  fact,  exactly  the  same  matter  as  that  which  appears  in  the 
usual  house  organ.  The  plan  is  well  worth  the  consideration 
of  executives  in  organizations  that  do  not  feel  that  they  can 
afford  the  expense  of  a  regular  publication  of  their  own. 

Furthermore,  a  large  number  of  organizations  are  using 
their  house  organ  as  a  means  of  influencing  prospective  members 
with  the  worth  of  the  organization  while  they  are,  as  President 
Mead  puts  it,  "in  the  incubation  stage."  It  should  not  be  over- 
looked that  this  education  of  prospective  members,  which  will 
ultimately  make  it  easy  to  bring  a  large  number  of  them  into 
the  organization,  makes  the  house  organ  a  paying  investment. 

Many  executives  feel  that  an  association  cannot  exist  on 
newspaper  publicity  alone,  unsupported  by  regular  reports  epit- 
omizing and  emphasizing  the  accomplishments  of  the  organi- 
zation. In  other  words,  it  seems  to  be  the  opinion  that  it  is 
necessary  from  time  to  time  to  lay  before  the  "stockholder- 
members"  of  the  organization  a  dividend  balance  sheet. 

In  view  of  the  opinions  advanced  and  the  recommendations 
made  by  the  executives  consulted,  there  is  but  one  conclusion, 
the  house  organ  has  come  to  stay.  It  is  a  logical  and  necessary 
complement  to  a  successful  community  organization.  It  is  a 
pulse-beat  from  the  association  itself,  carrying  to  every  part  of 
the  body  its  warming,  vivifying  influence,  dispelling  indiffer- 
ence and  misunderstanding,  awakening  enthusiasm  and  desire, 
creating  a  civic  vision  and  bringing  to  the  organization  that 
unanimity  of  thought  and  action  without  which  an  army  is  but 
a  mob. 


Promotional  Efforts  and  the  Public  Press 

By  ADOLPH  BOLDT 

We  are  living  in  an  age  of  publicity.  Advertising  is  mak- 
ing the  world  go  'round  and  at  a  giddy  speed  I  The  merchant, 
the  promoter,  the  manufacturer,  etc.,  with  an  unknown  or  non- 
advertised  article  for  sale,  is  soon  dropped  off  and  left  behind 
by  the  fearless  operator  who  takes  the  bone  of  advertising  and 
publicity  in  his  teeth  and  lets  the  world  know  he's  in  the  game. 

The  same  is  true  of  the  commercial  executive  or  secretary. 
Let  him  tell  the  members  and  the  public  at  large  through  the 
columns  of  the  daily  press  the  activities  of  his  organization 
and  he  will  find  the  people  and  the  press  back  of  him.  Let  him 
cover  his  activities  by  a  blanket  of  silence  and  he'll  soon  find 
out  that  it's  very  monotonous  to  do  all  the  boosting.  If  we  all 
hid  our  lights  under  a  bushel  this  would  be  a  dark  world,  in- 
deed. 

It  is  said  that  in  Houston  three  men  in  a  corner  can  ac- 
complish more  than  77  mass  meetings.  True,  if  one  of  the  three 
is  a  newspaper  reporter.  By  this  I  don't  mean  that  the  press 
should  have  access  to  everything.  We  all  know  that  executive 
meetings  are  ofttimes  necessary  for  the  good  of  a  proposition. 
Yet  when  the  time  comes  for  action,  if  it  is  action  by  the  pub- 
lic, it  is  the  newspapers  upon  which  we  all  depend  to  get  it 
before  them.  Then  if  we  approach  the  press  in  a  half-way  man- 
ner or  in  a  spirit  of  aloofness,  that  might  suggest  that  their 
part  of  the  cooperation  was  only  for  the  paper  to  be  used,  we 
can  not  expect  the  Avhole-hearted  assistance  in  news  columns 
and  editorial  pages  which,  without  any  movement  with  the  pub- 
lic, will  fall  flat. 

Show  Your  Newspapers  You  Trust  Them 
The  honor  of  the  average  present  day  newspaperman  is 
wonderful  and  an  inspiration.  Although  he  is  employed  to 
gather  facts  and  report  them,  he  will  invariably,  when  asked, 
repress  such  facts  until  released.  Give  him  your  confidence, 
show  him  you  honor  it  and  when  you  release  to  him  your  story 
and  permit  its  publication,  you  will  find  such  publication  great- 
er in  prominence,  better  prepared  and  a  genuine  message  from 
yourself  to  the  public,  rather  than  a  brief  notice,  hastily  written 
with  the  facts  secured  one  minute,  written  the  next  and  rushed 

into  print. 

257  9 


258  METHODS  OF  ORGANIZATION  AND  OPERATION. 

I  have  known  newspapermen  who  asked  that  such  confi- 
dence be  given  them.  If  the  story  or  matter  is  not  ready  for 
publication,  let  your  reporter  in  on  the  story  as  it  progresses, 
under  promise  of  secrecy,  and  when  the  news  breaks  you  will 
find  your  reporter  thoroughly  familiar  with  all  the  ramifica- 
tions of  the  story,  its  import  and  purposes  and  far  better  pre- 
pared to  give  you  an  interesting  exposition  of  your  efforts,  rath- 
er than  a  garbled  report  or  brief  secured  from  quickly  gath- 
ered facts,  he  can  not  in  a  short  time  fully  comprehend.  Try 
it,  but  first  know  your  reporter. 

Promotional  effort  is  itself  a  matter  largely  of  stock  selling. 
It  is  a  fact  that  there  are  few  worthy  industries  seeking  a 
change  of  base.  When  an  industry  knocks  for  admittance  at 
your  doors  ninety-nine  times  out  of  a  hundred,  there  is  a  string 
attached.  First  it  is  best  to  find  out  w^hy  the  industry  seeks  to 
move  from  another  town  to  yours.  There's  alw^ays  a  reason 
behind  such  moves  and  it  is  safe  to  find  out  w^hether  the  real 
reason  will  be  of  benefit  to  your  town.  If  an  industry  or  busi- 
ness is  a  failure  in  a  brother  secretary's  town,  the  chances  are 
it  will  be  a  failure  in  your  town  and  a  reported  failure  is  a 
demerit  against  your  town. 

Again  there  are  few,  very  few,  industries  that  come  to  an- 
other tow^n  seeking  entry  with  enough  finances  to  carry  them 
through.  Nearly  all  want  to  ship  in  an  old  plant,  and  enlist 
local  aid  to  reestablish  on  a  new  footing.  Should  the 
manufactured  article  be  a  patent,  remember  the  investor  ap- 
praises his  article  in  the  millions  W'hen  the  cool-headed  investor 
will  value  it  in  dollars.  Like  the  airbrake  the  patent  may  later 
be  worth  millions  when  its  success  is  fully  developed,  but  you 
can  safely  discount  it  one  one-hundredth  at  its  beginning,  as 
Vanderbilt  did  when  Westinghouse  approached  him  with  his 
airbrake  and  Vanderbilt  scouted  the  idea  of  applying  train 
brakes  with  "wind." 

When  an  industry  seeks  to  move,  first  find  the  reason.  If 
the  reason  is  meritorious  and  your  city's  advantages  will  remove 
the  barrier  the  industry  worked  against  in  another  city,  you 
have  a  good  prospect  to  work  upon.  Find  out  the  condition  of 
the  business,  appraise  the  plant  with  an  expert  eye,  apart  from 
the  appraisal  placed  by  the  owners,  hear  the  plans  of  the  new- 
comers and  then  meet  with  your  manufacturers'  committee. 
Have  this  committee  consist  of  manufacturers,  bankers  and 


KEEPING  THE  MEMBERS  INFORMED.  259 

capitalists,  shrewd  business  men,  but  not  too  conservative. 
Have  them  liberal,  yet  safe  and  the  advice  they  will  give  you 
may  be  depended  upon. 

Ofttimes  they  will  pick  to  pieces  the  plans  submitted  by 
the  newcomers.  The  latter  can  see  but  one  side — success  in 
the  new  field  with  unlimited  capital.  The  committee  views  it 
from  another  angle — can  it  succeed,  will  the  money  be  profit- 
ably invested,  the  business  well  managed  and  a  fair  return  of 
profit  yielded?  You  can  depend  on  the  revised  plan  offered 
by  the  committee.  Offer  it  to  the  newcomers  and  stand  on  it. 
Let  them  take  it  or  reject  it.  If  they  don't  want  it,  you  don't 
want  the  industry.  Play  safe,  remembering  you  are  acting 
for  the  city  with  every  inhabitant  as  your  client.  Don't  offer 
the  people  something  you  wouldn't  take  yourself  and  you  can 
come  very  near  putting  over  anything  you  want. 

If  the  revised  plan  is  accepted  by  the  newcomers  your  line 
of  cooperation  shifts  to  the  newspapers.  If  the  unexpected  has 
occurred,  and  the  incoming  industry  has  plenty  of  funds,  enlist 
the  newspapers  in  giving  them  a  proper  welcome  and  introduce 
the  goods  to  be  manufactured  to  the  home  people.  Nothing 
will  inspire  a  new  manufacturer  more  than  material  welcome 
in  a  new  city  by  the  people  trying  his  goods.  Make  him  feel 
at  home,  ask  the  press  to  comment  editorially  and  make  the 
newcomer  feel  you  are  glad  he  came.  Your  good  feeling  through 
the  press  will  kindle  a  like  feeling  with  the  people  and  the  new- 
comer, too,  will  be  glad  he  came. 

When  the  Newspaper  is  Your  Best  Aid 

But,  should  the  newcomer  seek  additional  capital  (and 
they  nearly  all  do)  and  the  manufacturers'  committee  has  in- 
dorsed his  plan  or  submitted  a  new  one  that  has  been  accepted, 
the  newspaper  becomes  your  invaluable  ally. 

Before  you  attempt  to  place  a  dollar's  worth  of  stock,  have 
your  projected  enterprise  well  advertised.  Let  the  newspapers 
in  on  the  whole  scheme  and  if  there  is  any  part  of  it  you  do 
not  want  printed,  you  can  rely  on  them  not  to  print  it  if  you 
so  request  and  play  fair  with  them.  But  if  you  want  the  whole- 
hearted cooperation  of  the  newspapers  take  them  into  your 
confidence,  unfold  the  whole  plan  and  show  how  they  can  co- 
operate. With  all  the  plans  before  them  you  will  find  them 
just  as  interested  as  you  and  your  path  well  paved  with  pub- 


260  METHODS  OF  ORGANIZATION  AND  OPERATION. 

licitj,  when  you  go  out  into  the  town  with  your  subscription 
lists. 

If  an  enterprise  is  indorsed  by  the  press  the  people  are  with 
you.  They  have  made  your  introductory  speech,  your  prospec- 
tive investors  have  been  apprised  of  your  proposition  in  advance 
and  their  opinion  is  bound  to  be  favorable  with  press  comment 
behind  it. 

If  the  money  is  available  you  will  find  your  task  easy. 
As  subscriptions  are  secured  publicity  of  this  fact  will  make 
your  task  lighter  as  the  dollars  pile  up  and  you  will  find  in 
the  end  that  your  confidence  in  the  newspapers  was  not  only 
well  placed,  but  they  practically  have  done  the  work  for  you. 

Now  in  contrast  imagine  the  secretary  w^ho  hoards  to  him- 
self his  industrial  plans,  and  tries  to  raise  |50,000  or  more 
alone.  If  he  expects  to  do  it  all  himself  and  when  the  work 
is  accomplished  make  a  newspaper  splurge,  it  lis  doubtful 
whether  it  will  ever  come  to  that  point.  Raising  money  is  hard 
enough  in  itself  and  can  not  be  done  without  cooperation.  The 
fact  that  you  have  created  the  plan  and  led  the  fight  with  the 
new^spapers  giving  it  impetus  is  credit  enough  all  around ;  but  in 
the  final  analysis  it  is  not  credit  marks  you  are  seeking,  but 
something  for  your  town. 

Cooperate  with  the  newspapers  and  they  will  cooperate 
with  you.  Try  to  use  them  and  they  will  have  your  nose  on  the 
grindstone.  They  are  the  moulders  of  public  opinion,  without 
which  your  efforts  would  be  nil.  Get  the  newspapers  behind 
you  in  all  your  efforts  and  half  of  your  battles  will  be  won 
before  they  are  started. 

Keeping  the  Members  Informed 

By  JAMES  A.  McKIBBEN 

Granted  that  you  have  an  efficient  organization,  and  that 
your  members  have  an  appreciation  of  the  proper  field  of  work 
and  of  endeavor  of  an  organization  such  as  we  are  connected 
wdth,  it  does  not  necessarily  follow  that  you  have  an  interested 
membership.  These  things  are  merely  the  foundation  upon 
which  the  structure  of  active,  live  interest  must  rest.  What 
are  the  essential  elements  of  a  strong  and  enduring  superstruc- 
ture of  sustained  interest? 

Obviously,  one  of  the  main  supports  of  your  superstruc- 


KEEPING  THE  MEMBERS  INFORMED.  261 

ture  must  be  an  efficient  plan  for  keeping  the  members  well  in- 
formed as  to  what  the  organization  is  doing  and  attempting  to 
do. 

There  are,  to  be  sure,  successful  business  men  who  will 
argue  with  vigor  and  conviction  that  any  particular  effort  to 
keep  your  members  informed  is  unnecessary;  that  ail  that  is 
necessary  is  to  do  efficient  work,  and  that  if  the  organization 
is  doing  efficient  work,  its  members  will  find  it  out.  The  busi- 
ness man  who  takes  that  point  of  view  may  know  all  about  his 
business,  but  he  does  not  know  the  first  principles  of  working 
with  the  public,  and  he  does  not  understand  human  beings. 
One  of  the  fundamental  facts  about  human  beings — and  one 
wliich  it  is  well  for  anybody  interested  in  carrying  on  any  public 
movement  to  bear  in  mind — is  that  they  are  all  by  nature  ego- 
tists; and  one  of  the  many  ways  in  which  that  trait  shows  it-. 
self  is  a  man's  tendency  to  assume  that  what  he  does  not  know 
about  does  not  exist.  If  he  has  not  heard  about  his  organiza- 
tion doing  a  thing,  he  instinctively  assumes  that  it  has  not 
done  it;  if  he  has  not  heard  about  a  thing  happening,  he  as- 
sumes that  it  has  not  happened;  and  if  he  does  not  know  af- 
firmatively that  your  organization  is  doing  efficient  work,  he 
instinctively  assumes  that  it  is  not. 

In  any  public  movement,  whether  it  be  carried  on  by  a  com- 
mercial organization  or  any  other  association,  your  chances 
of  doing  successful  and  efficient  work  are  very  small  unless  you 
keep  those  for  and  with  whom  you  are  working,  informed  and 
carry  them  along  with  you.  Most  organizations  realize  this; 
most  organizations  are  attempting  in  some  way  to  meet  the 
situation;  and  there  is  no  organization,  I  imagine,  which  will 
not  admit  that  its  efforts  have  not  been  altogether  successful — 
and,  perhaps,  even  that  the  results  are  sometimes  quite  dis- 
couraging. We  in  Boston  have  certainly  struggled  with  the 
problem,  and  are  still  struggling  with  it. 

Some  Ways  of  Keeping  Them  Informed 

It  is  just  as  true  in  this  field  as  in  any  other,  that  no  other 
agency  has  yet  been  devised  that  compares  with  the  personal 
interview,  either  in  efficiency,  in  surety  of  results,  or  in  the 
quickness  with  which  it  produces  them.  Business  men  do  not 
by  choice  sell  goods  by  mail  or  by  circular  if  it  is  feasible  for 
them  to  have  a  good  salesman  call  on  the  customer.    Whatever 


262  METHODS  OF  ORGANIZATION  AND  OPERATION. 

the  size  or  nature  of  3^our  organization,  it  is  well  to  take  a  leaf 
out  of  the  book  of  business  experience  and  utilize  the  personal 
call  to  the  extent  to  which  the  size  of  your  organization  per- 
mits. 

It  is  an  easy  matter  for  the  small  organization  to  keep  in 
close  and  efficient  touch  with  its  members  through  personal 
interviews  by  its  officers  and  directors.  They  can,  and  ought 
to,  make  use  of  this  efficient  agency  to  a  much  greater  extent 
than  they  usually  do. 

In  the  case  of  the  somewhat  larger  organization,  located  in 
the  medium-sized  locality,  it  is  entirely  feasible  to  utilize  the 
personal  interview  to  a  considerable  extent;  and  an  auxiliary 
agency  is  almost  always  at  hand  in  the  local  newspaper  which 
can,  and  usually  will  quite  willingly,  devote  as  much  space  to 
what  the  commercial  organization  is  doing  as  the  organization 
will  furnish  real  good,  live  news  to  fill.  The  yoking  of  these 
two  agencies — the  personal  interview  and  the  columns  of  the 
local  newspaper — gives  the  medium-sized  organization  in  the 
medium-sized  community  the  very  best  chance  of  all  to  convey 
its  message  satisfactorily  to  it«  members. 

Inquiry  as  to  the  extent  to  which  this  auxiliary  agency  has 
been  used  will  be  likely  to  elicit  some  complaint  of  lack  of  co- 
operation on  the  part  of  the  publishers  of  the  local  newspaper ; 
but  such  investigation  as  I  have  been  able  to  make  causes  me  to 
have  a  good  deal  of  sympathy  with  the  publisher.  He  is  not  a 
magician,  and  with  the  very  best  intentions  he  can  only  ac- 
complish a  very  little  in  the  direction  of  transforming  dry, 
uninteresting  "drool" — such  as  he  is  too  frequently  furnished 
— into  live,  interesting  reading  matter.  There  are  always  two 
sides  to  a  case,  and  I  am  inclined  to  think  that  investigation 
will  convince  you  that  where  the  local  commercial  organiza- 
tion has  not  the  cooperation  of  the  local  newspaper,  the  fault 
is  not  usually  principally  on  the  side  of  the  publisher  of  the 
paper. 

The  difficulties  of  the  problem  of  keeping  the  members  in- 
formed increase  as  the  size  of  the  organization  and  the  size  of 
the  city  increases — and  they  increase,  not  in  arithmetical,  but  in 
geometrical  ratio;  and,  unfortunately,  while  the  difficulties 
have  increased,  the  possibility  of  utilizing  the  agencies  which 
I  have  mentioned,  has  decreased.  The  number  whom  you  can 
reach  by  personal  interviews  is  very  small,  and,  unlike  the 


ORGANIZATION  BULLETINS— THEIR  HITS  AND  MISSES.        263 

newspaper  in  a  town  or  small  city  where  the  problem  of  the 
publisher — whether  he  will  admit  it  or  not — is  to  get  enough 
live  matter  to  fill  his  columns,  the  pressure  for  space  upon  the 
management  of  a  newspaper  in  a  metropolitan  city  is  terrific. 
A  newspaper  in  a  large  metropolitan  city  will  not — and,  frank- 
ly, I  do  not  believe  can  reasonably  be  expected  to — give  any- 
thing like  a  proportional  amount  of  space  in  comparison  with 
the  amount  which  the  newspaper  in  a  small  city  can  and  will 
give.  In  the  case  of  the  large  organization  in  a  large  city,  the 
problem  is,  therefore,  immensely  more  difficult,  and  the  agencies 
upon  Avhich  the  small  organization  can  rely  are  very  much  less 

available.  ^  ^  ^        .      .      ^ 

Type  of  Organization  Organs 

As  a  consequence,  most  of  them  have  considered  it  neces- 
sary to  establish  a  publication  of  their  own.  The  first  experi- 
ment is  usually  a  monthly  magazine;  and  although  there  has 
been  a  trend  in  the  last  few  years  towards  the  weekly  publica- 
tion, the  monthly  is  still  by  far  the  most  prevalent  type  of  or- 
ganization organ. 

A  good  monthly  can  do  a  great  deal  for  an  organization  and 
for  its  city,  and  it  has  some  advantages  over  any  other  form  of 
publication;  but  as  a  means  of  conveying  "live"  news,  it  is 
somewhat  lacking.  If  it  is  of  any  considerable  size,  the  very 
last  of  the  copy  will  have  to  be  furnished  to  the  printer  from 
six  to  ten  days  before  it  is  delivered  to  your  members — and 
this  means  that  its  freshest  news  is  from  a  week  to  ten  days 
old,  and  the  oldest  from  five  to  six  weeks  old,  when  it  gets  to 
your  members. 

On  the  other  hand,  a  weekly,  being  smaller  in  size  and  dif- 
ferent in  shape,  can  be  printed  and  delivered  within  twenty- 
four  hours  from  the  time  that  the  last  of  the  copy  is  delivered 
to  the  printer.  It  also  has  some  other  advantages  over  the 
monthly,  and  as  a  consequence,  a  considerable  number  of  the 
larger  organizations  have  adopted  this  style  of  publication. 

Other  Ways  of  Keeping  Members  Informed 
Reliance  ought  not  to  be  placed  entirely,  however,  on  any 
one  or  all  of  the  three  agencies  I  have  mentioned — the  personal 
interview,  the  local  newspaper,  and  the  monthly  or  weekly 
publication.  If  you  expect  to  keep  every  member  informed, 
you  must  utilize  every  possible  agency;  and  there  are  still 
other  agencies  available. 


264  METHODS  OF  ORGANIZATION  AND  OPERATION. 

One  other  way  is  to  utilize  another  fundamental  fact  about 
human  beings.  Men  are  gregarious  animals.  The  interest  of 
the  members  of  the  organization  in  it  and  its  work  can  be 
greatly  increased  by  getting  them  together  in  a  social  way — 
and  then  utilizing  the  occasion  for  informing  them  about  some 
phase  of  the  organization's  work  or  some  matter  in  which  the 
members  of  the  organization  are  naturally  interested.  There 
is,  of  coui^e,  a  danger  of  overemphasizing  the  social  features  of 
the  organization.  Excessive  zeal  to  get  a  good  attendance 
and  "make  a  showing"  has  blinded  many  an  organization  and 
many  a  secretaiy  to  the  fact  that  getting  together  a  large 
number  of  your  members  at  a  dinner  merely  to  hear  some- 
body make  a  funny  speech  does  not  materially  increase  their 
interest  in  the  organization  and  its  work.  The  noted  orator 
or  witty  speaker  may  be  necessary  as  a  drawing  card ;  but  the 
organization  which  does  not  utilize  the  occasion  to  convey  to  its 
members  something  which  will  be  of  lasting  value  to  the  or- 
ganization and  to  the  community,  has  failed  to  take  full  ad- 
vantage of  the  opportunity.  The  combination  which  we  have 
found  to  work  best  is  three  speakers,  each  occupying  from 
twenty  to  thirty  minutes — one  a  great  orator  or  noted  man 
with  "drawing  power,''  another  who  will  say  something  really 
"meaty,"  and  finally  a  short,  witty  speech.  Some  people  like 
oratory,  and  others  want  "meat" — and  both  these  classes  (al- 
though the  latter  class  will  not  always  cheerfully  admit  it) 
like  a  little  fun,  if  it  is  not  overworked. 

A  method  of  getting  the  members  together  which  has  in- 
creased in  popularity  tremendously  in  the  last  few  years  is 
the  noon-day  luncheon,  followed  by  one  or  more  addresses,  oc- 
cupying between  a  half  hour  and  an  hour.  In  fact,  it  is  per- 
haps not  putting  it  too  strongly  to  say  that  this  is  the  com- 
mercial organization  fad  of  the  present  time.  Here,  again,  as 
in  the  case  of  dinners,  the  increase  in  mutual  acquaintance  and 
understanding  is  of  considerable  value  to  the  organization: 
but  these  noonday  luncheons  can  be  given  a  permanent  and 
lasting  value  by  systematic  and  well-planned  attempts  to  con- 
vey to  the  members  a  message  of  real  value  to  the  organization 
and  the  community — and  to  the  members  themselves. 

Another  method  of  turning  the  gregarious  instincts  of 
human  beings  to  the  profit  of  the  organization,  used  more  fre- 
quently in  the  West  than  in  the  East,  is  to  provide  luncheon 


ORGANIZATION  BULLP]TINS— THEIR  HITS  AND  MISSES.        265 

accommodations  for  your  members.  The  getting  of  the  man 
into  your  building,  and  especially  his  acquiring  the  habit  of 
coming  there  from  day  to  day,  or  at  frequent  intervals,  has 
the  psychological  effect  on  his  mind  of  identifying  him  with 
the  organization  and  imbuing  him  with  the  esprit  de  corps  of 
the  body.  Many  business  men  find  the  lunch  hour  the  most 
convenient  time  for  committee  meetings,  and  good  luncheon 
accommodations  are  likely  to  assist  greatly  in  securing  satis- 
factory attendance  at  committee  meetings  and  have  a  marked 
tendency  to  keep  the  committees  in  close  touch  with  the  or- 
ganization and  with  its  members.  The  potential  advantages 
of  luncheon  accommodations  are  very  great;  but  left  to  itself, 
a  lunch  room  is  likely  to  be  of  little  value — and  may  even  be 
a  source  of  weakness,  through  over-emphasizing  the  social 
side  of  the  organization.  It  is  only  by  well-planned,  systematic 
work  that  the  potential  advantages  may  be  realized. 


Organization  Bulletins — Their  Hits  and  Misses 

By  G.  W.  LEMON 

Organization  bulletins — why  have  them — what  type  is  the 
most  popular — what  is  the  most  successful — are  we  hitting  or 
missing  the  mark  with  them — are  they  really  worth  the  time, 
effort  and  money  expended?  Despite  the  fact  that  there  are  a 
few  secretaries  not  yet  convinced  that  bulletins  are  worth 
while,  the  overwhelming  majority  of  those  who  answered  my 
questionaire  declare  for  a  bulletin. 

Why?  "It  is  the  show  window  of  the  chamber  of  com- 
merce, doing  for  the  organization  what  the  window  display 
does  for  a  business  establishment. 

"It  is  the  direct  connection  and  point  of  contact  between 
the  membership  at  large  on  the  one  hand,  and  the  organization 
and  its  executive  officers  on  the  other. 

"Permits  the  presentation  of  chamber  of  commerce  news 
and  views  from  the  chamber  of  commerce  standpoint. 

"Drives  home  it«  purposes  and  activities  in  a  way  which 
cannot  be  done  in  the  press. 

"It  allows  specific  and  direct  personal  appeals  to  be  made 
to  the  individual  member. 


266  METHODS  OF  ORGANIZATION  AND  OPERATION. 

"Serves  as  a  check  upon  the  secretary  and  the  board  of 
directors,  making  both  realize  their  full  responsibility  to  the 
organization. 

"The  bulletin  serves  as  an  alibi  when  a  member  complains 
that  he  has  not  been  kept  fully  informed  of  activities;  he  has 
no  come-back  if  he  fails  to  benefit  by  the  information  given. 

"The  real  purpose  of  a  bulletin  is  to  sell  the  organization 
to  the  member  and  to  constantly  keep  him  sold.  If  only  25 
per  cent  of  the  membership  read  it,  it  is  worth  while." 

In  fairness  a  word  should  be  said  regarding  the  objection 
to  an  organization  bulletin.    It  is  contended : 

"That  special  reports  and  pamphlets  on  specific  subjects 
are  far  more  effective. 

"That  by  the  time  of  issue,  bulletin  news  is  stale. 

"That  they  are  not  read,  one  city  making  a  test  which  led 
to  the  abandonment  of  its  bulletin. 

"That  newspaper  publicity  is  better  and  costs  less  money. 

"That  a  mimeographed  weekly  letter  is  more  effective. 

Character  of  Publication 

Assuming  that  an  organization  bulletin  is  worth  while,  let 
us  now  discuss  its  character.    Should  it  be  a  chamber  of  com 
merce  newspaper?    A  letter  from  the  secretary  to  the  member- 
ship?   A  medium  of  civic  propaganda?    A  city  booster? 

Some  favor  a  strictly  chamber  of  commerce  publication, 
contending  that  the  chamber  of  commerce  bulletin  should  not 
enter  the  national  magazine  field,  but  fill  its  own  peculiar 
field,  which  is  not  open  to  any  magazine  or  publication  of  the 
general  type.  Others  favor  the  pretentious  magazine.  Still 
others  differentiate  between  the  bulletins  of  large  and  small 
organizations— pointing  out  that  the  pretentious  magazine 
meets  the  requirements  of  the  former,  while  not  at  all  suited 
to  the  needs  of  the  smaller  organization. 

There  are  those  who  believe  that  the  bulletin,  while  main- 
taining the  chamber  viewpoint,  should  serve  a  broader  purpose 
as  a  clearing  house  for  general  business  information  and  a 
medium  of  exprevssion  for  leaders  in  current  activities,  both 
local  and  national. 

Every  organization  desires  to  publish  as  fine  a  bulletin  as 
finances  will  permit;  but  the  bulletin  that  suits  Tulsa,  Chicago 
and  Milwaukee  would  hardly  meet  the  requirements  or  the 


SOME  DANGP:RS  of  house  organs.  267 

resources  of  the  smaller  organizations.  No  general  rule,  it 
seems  to  me,  can  be  laid  down,  but  it  may  be  said  that,  in  the 
smaller  cities,  and  many  of  the  large  ones,  the  strictly  chamber 
of  commerce  house  organ  remains  and  will  likely  continue  to 
remain  the  prevailing  type.  In  some  of  the  large  cities  the 
trend  is  unmistakably  toward  the  pretentious  magazine,  a 
type  well  exemplified  by  ^•Chicago  Commerce''  and  Milwaukee 
"Civics  and  Commerce." 

Form,  Size  and  Advertising 

A  good  deal  might  be  said  regarding  the  form,  size  and 
makeup.  A  large  number  of  secretaries  favor  the  newspaper 
form  in  type,  column  and  headline.  Some  bulletins  have  adopt- 
ed the  two-column  form,  but  a  majority  favor  three  columns 
to  the  page.  I  might  say,  however,  that  the  answers  to  the 
questionaire  clearly  indicate  that  the  trend  is  away  from  the 
4x9  and  5x10  and  toward  the  81/2x11  and  the  9x12,  or  larger. 
Convenience  in  filing  and  mailing  would  seem  the  chief  reason 
for  the  popularity  of  the  8^4x11  size. 

We  now  come  to  the  most  debatable  part  of  this  subject. 
Does  house  organ  advertising  really  pay  the  advertiser,  or  does 
he  regard  it  as  a  donation? 

Memphis  (Tenn.),  Chicago  (111.),  Detroit  (Mich.),  Kansas  City  (Mo.), 
New  Orleans  (La.),  and  Boston  (Mass.),  submit  specific  proofs  that  adver- 
tising pays  the  advertiser,  alleging  that  it  often  comes  to  them  without  so- 
licitation and  remains ;  that  it  is  regarded  as  an  investment  and  not  a  dona- 
tion ;  and  enables  the  organization  to  pay,  or  partly  pay,  for  the  bulletin. 

Memphis  {Tenn.)  Chaml)er  of  Commerce  submits  specific  proof  that  its 
house  organ  advertising  pays  the  advertiser  by  relating  the  instance  of  a 
jobber  who  had  to  leave  his  name  off  his  advertisement  because  he  got  so 
many  inquiries  from  retail  buyers  for  the  product  he  was  advertising. 

Boston  (Mass.)  Chamber  of  Commerce  says:  "Advertising  is  very  fre- 
quently received  and  renewed  without  solicitation  of  any  kind.  The  bulletin 
is  used  as  a  medium  by  many  advertising  agencies,  who  buy  space  without 
solicitation,  and  who  know,  if  any  do,  the  intrinsic  worth  of  a  publication. 
Advertisers  frequently  declare  that  the  ad  brings  them  substantial  returns 
and  we  believe  they  are  getting  full  value  for  every  dollar  spent.  It  is  our 
policy  to  inform  advertisers  at  every  opportunity  that  space  is  sold  solely 
on  the  merits  of  the  publication  and  that  no  advertisements  are  accepted  that 
are  in  any  sense  donations." 

The  Detroit  (Mich.)  Board  of  Commerce  states  that  they  have  instances 
every  week  of  direct  results  from  advertising  and  that  the  head  of  a  large 
advertising  agency  has  said  that  "The  Detroiter"  is  "the  best  medium  in  the 
territory  for  certain  classes  of  things." 

Rochester  (N.  Y.)  Chamber  of  Commerce  submits  a  50-50  report,  after 
stating  that  the  advertisers  "let  their  contracts  on  the  basis  of  value."  One 
man  in  the  office,  of  excellent  judgment,  an  old  newspaper  and  advertising 


268  METHODS  OF  ORGANIZATION  AND  OPERATION. 

man,  claims  the  advertising  is  not  worth  a  "whoop/'  The  secretary  adds: 
"Personally,  I  am  inclined  to  a  50-50  opinion.  I  am  sure  thut  some  of  the 
advertisers  get  their  money's  worth  and  some  do  not." 

Against  Advertising 

Montgomery  (Ala.),  New  York  (N.  Y.),  and  Peoria  (111.),  take  vigorous 
exception  to  the  admission  of  advertising,  claiming  that  it  cheapens  the  publi- 
cation, distracts  the  attention  of  the  reader  and  takes  away  from  the  value 
of  the  publication. 

Los  Angeles  (Cal.),  Kalamazoo  (Mich.),  Piqua  (Ohio),  and  Wilmington, 
(Del.),  look  upon  it  as  in  the  nature  of  a  holdup,  or  at  least  a  donation. 

Coatesville  (Pa.),  and  Lawrence  (Mass.)  state  that  they  cannot  in 
decency  ask  help  in  fighting  the  advertising  nuisance  if  they  accept  advertis- 
ing in  their  monthly  bulletins. 

New  York  (N.  Y.),  Toledo  (Ohio),  Minneapolis  (Minn,),  and  Fall  River 
(Mass.),  fear  that  the  advertiser  might  wish  to  dominate  the  policy  of  the 
bulletin  and  they  declare  for  an  absolutely  uninfluenced  and  unobligated  op- 
lK)rtunity  to  say  what  they  please. 

Bradford  (Pa.),  Ix)s  Angeles  (Cal.),  Wilmington  (Del.),  and  New  York 
(N.  Y.),  feel  that  the  members  might  consider  requests  to  take  advertising 
as  in  the  nature  of  a  request  for  a  special  contribution  in  addition  to  annual 
dues. 

Dallas  (Texas)  submits  that  the  entire  membership  should  stand  the  ex- 
pense of  publishing  a  bulletin  rather  than  individual  contributors. 

Summary 
Has  advertising  in  house  organs  come  to  stay?  Time  was 
that  the  great  magazines  of  our  country  did  not  carry  adver- 
tisements. It  seems  strange  to  think  of  it  today,  but  up  to 
November,  1870,  when  '^'Scrihner's  Monthly'^  began  it,  periodi- 
cal magazines  did  not  print  advertising  at  all.  And  William 
W.  Ellsworth  tells  us  that  he  remembers  "listening  with  star- 
ing eyes,  while  Fletcher  Harper,  the  younger,  related  that  he 
had  in  the  early  seventies  refused  an  offer  of  $18,000  for  the 
use  of  the  last  page  of  the  magazine  for  a  year  for  an  advertise- 
ment of  the  Home  Sewing  Machine." 

It  is  not  necessary  for  me  to  attempt  to  draw  any  conclu- 
sion or  give  a  decision  upon  this  "joint  debate"  on  the  ques- 
tion: "Advertising,  is  it  worth  while  or  is  it  not?"  Is  it  not 
largely  a  question  of  circulation?  Do  you  not  think  that  if 
any  chamber  of  commerce  bulletin  ^\dll  reach  the  buyers  that 
a  given  advertiser  wants  to  reach,  that  publication  will  be  used 
sooner  or  later,  as  has  been  the  case  with  prominent  publica- 
tions that  one  time  refused  to  carry  advertising? 

"Many  men,  many  minds,  and  not  all  of  the  same  mind." 
Will  there  not  always  be  differences  of  opinion  and,  therefore, 
different  policies  regarding  organization  bulletins,  their  size. 


NEWS  VALUE  IN  ORGANIZATION  PUBLICITY.  269 

character,  contents,  etc.;  differences  due  not  alone  to  the  per- 
sonality of  their  editors,  but  to  local  conditions  and  require- 
ments and  to  financial  resources?  It  is  to  be  doubted  if  the 
time  will  ever  come  when  one  standard  will  prevail,  even  a 
standard  for  the  large  city  and  one  for  the  small. 

If  the  secretary  has  found  his  size,  make-up,  editorial  and 
business  policy  adapted  to  his  community,  then  why  not  let 
him  retain  it,  even  though  he  may  be  in  a  minority?  At  the 
same  time  we  must  preserve  the  open  mind — we  must  be  always 
ready  to  adopt  new  ideas — and  there  is  no  secretary  who  can 
afford  not  to  read  the  publications  that  come  to  liis  de^k,  for 
from  them  he  will  glean  not  only  information  regarding  the 
chamber  of  commerce  movement  in  this  country,  but  up-to-date 
ideas  for  headlines  and  display. 

Few  of  us  realize  to  the  full,  as  Mead  of  New  York  well 
says,  "the  opportunity  for  constructive  service  on  the  part  of 
organization  house  organs.''  We,  as  secretaries,  are  practically 
in  control  of  a  new  form  of  literature.  The  direction  it  shall 
take,  the  policies  it  shall  promote,  in  a  word  its  character  and 
its  purpose,  lies  in  our  hands.  We  must  make  our  house  organ 
literature  serve  the  highest  interest  of  our  organizations,  our 
community,  our  country. 


Some  Dangers  of  House  Organs 

By  G.  W.  LEMON 

One  great  factor  in  sustaining  membership  is  keeping  our 
members  informed.  This,  of  course,  immediately  suggests  a 
discussion  of  publicity  through  letter-bulletins,  special  weekly 
pages  in  local  newspapers  and  house  organs  daily,  weekly  or 
monthly.  But  the  whole  question  of  house  organs,  their  fre- 
quency of  issue,  whether  advertising  should  be  accepted  or  not 
— all  this  has  been  given  at  former  conventions.  You  may 
find  it  all,  as  Kipling  says,  "in  the  files."  But  may  I  venture 
a  few  observations  and  criticisms  upon  the  contents  of  some 
of  our  bulletins.  What  I  am  about  to  say  has  come  to  me 
chiefly  from  my  own  experience.  I  myself  have  been  guilty  of 
some  of  the  very  things  which  I  am  now  criticizing. 

Are  we  hitting  the  bulPs-eye  with  our  house  organs?  The 
only  excuse  we  have  for  spending  money  on  a  bulletin  is  that 


270  METHODS  01^  ORGANIZATION  AND  OPERATION. 

it  is  intended  to  keep  our  members  informed  as  to  what  we 
kave  done  or  are  planning  to  do ;  to  seek  to  educate  the  member 
in  the  commercial  organization  idea  and  to  enlist  his  active 
cooperation  in  helping  to  solve  the  problems  which  confront 
his  community.  Therefore,  a  bulletin  is  primarily  for  members 
only!  What  do  we  sometimes  make  it?  Is  it  not  frequently  a 
collection  of  more  or  less  interesting  photographs,  wisdom  of 
sages,  humor  clipped  from  the  funny  columns  of  newspapers 
or  other  bulletins,  some  ^^boost  stuff"  about  our  city  with  a 
few  articles  which  bear  directly  upon  our  organization? 

While  thinking  over  this  phase  of  the  question  of  woi*th 
while  bulletins  I  reached  for  a  pile  of  them  lying  on  a  table 
near  m^^  desk.  I  mention  this  to  show  that  I  did  not  hunt  for 
examples — they  were  right  at  hand.  Bulletin  "A"  contained 
seven  photos  of  men  who  had  joined  the  colors  and  were  re- 
porting for  active  duty.  Bulletin  ^^B"  gave  up  one  entire  page 
to  a  letter  by  a  soldier  en  route  descriptive  of  life  on  a  (slow) 
military  train.  Bulletin  "C  contained  editorials  reprinted 
from  the  local  and  from  the  New  York  newspapers.  Another 
secretary-editor  devoted  an  entire  page  of  his  publication  to 
chronicling  "Where  they  Spent  their  Vacations."  And  so  one 
might  go  on — but  I  have  cited  these  few  examples  to  illustrate 
what  I  mean. 

The  lure  of  the  "mailing  list"  has  proved  too  strong  for 
many  of  us.  We  have  gotten  together  material,  not  so  much 
for  home  consumption  as  for  export.  Of  course,  we  salve  our 
editorial  conscience  by  declaring  that  it  is  "good  publicity  for 
our  city"  and  stuff  like  that.  I  believe  the  problem  of  member- 
shii3  maintenance  will  more  easily  be  solved  if  we  use  the  great 
power  of  our  house  organs  for  the  specific  purposes  as  above 
outlined. 

Second  only  in  importance  to  house  organs  as  a  medium 
for  keeping  our  members  informed,  it  is  often,  I  fear,  a  source 
of  danger  in  the  hands  of  a  man  who  sees  only  the  "story"  in 
a  big  movement  or  in  a  major  activity  of  the  chamber.  Two 
things  are  to  be  guarded  against :  First,  publicity  of  the  boast- 
ful variety,  which  would  have  the  public  think  that  the  only, 
useful,  worth-while  things  emanate  solely  from  the  chamber  of 
commerce.  Second,  the  personal  presentation  of  every  activity, 
by  which  I  mean  that  it  is  a  terrible  blunder  to  "give  out"  news 
from  your  office  in  which  your  own  name  constantly  appears  or 


NEWS  VALUE  IN  ORGANIZATION  PUBLICITY.  271 

the  names  of  j^our  president,  your  board  or  your  committee 
chairmen.  There  are  times  when  the  use  of  names  is  not  only 
unavoidable,  but  essential;  but  in  nine  cases  out  of  ten  the 
newspaper  story  written  from  the  impersonal  angle  will  do  the 
most  good — and  the  least  harm. 


News  Value  in  Organization  Publicity 

By  H.  F.  MILLER 

I  think  the  most  profitable  thing  we  can  discuss  is  organi- 
zation advertising  as  distinguished  from  municipal.  Our  or- 
ganization is  something  like  nine  years  old.  We  began  with 
ninety-three  members.  No  one  believed  it  would  succeed,  be- 
cause similar  efforts  had  failed.  Chicago  was  the  worst  disor- 
ganized town  in  the  country ;  in  fact,  we  did  not  have  anything 
approaching  a  civic  organization.  We  had  a  number  of  organi- 
zations that  had  their  special  place  and  distinct  purpose — any 
number  of  them,  but  none  of  them  were  of  any  great  civic  value ; 
always  had  some  special  thing  to  perform.  But  when  it  came 
to  organization  for  community  interest,  the  first  thing  necessary 
was  to  arouse  a  desire  on  the  part  of  the  public  to  organize. 
We  were  handicapped  by  the  fact  that  some  of  our  biggest  in- 
stitutions did  not  believe  in  the  idea  that  towns  as  big  as  Chi- 
cago or  New  York  should  have  such  organizations;  that  it  was 
a  case  of  every  man  for  himself;  that  organization  plans  were 
for  smaller  cities;  that  commercial  organizations  in  large  cities 
would  not  succeed.  We  had  to  overcome  that.  The  best 
medium  we  found  was  the  newspapers,  so  we  organized  a  pub- 
licity committee.  That  committee  was  made  up  of  our  biggest 
advertisers.  Just  as  soon  as  possible  we  got  away  from  the 
idea  of  asking  the  newspapers  for  something,  that  is,  going  to 
them  and  begging  for  space.  Very  soon  we  found  that  the  way 
to  get  the  space  was  to  trade  news  for  it,  and  we  consider  now 
that  the  greatest  asset  of  our  organization  is  its  news-pro- 
ducing qualities.  Our  biggest  problem  is  to  coin  that  into  prac- 
tical results.  So  we  began  to  pick  out  the  news  features.  We 
found  that  it  was  not  sufficient  merely  to  say  "we  have  a  story^' 
on  a  certain  subject.  We  were  fortunate  in  having  in  the  em- 
ploy of  the  association  some  three  or  four  men  who  had  a  great 
deal  of  experience  in  newspaper  work  and  advertising,  so  that 


2J2  METHODS  OF  ORGANIZATION  AND  OPERATION. 

we  had  the  newspaper  man's  point  of  view.  It  developed  a  new 
situation,  in  that,  when  they  found  a  piece  of  news,  they  might 
exchange  it  for  space.  They  dressed  that  news  up  in  newspa- 
per style  and  sent  it  over  to  the  city  editor.  They  soon  found 
it  was  a  help  underrated  rather  than  overrated,  and  that  it 
was  better  to  give  them  a  tip  in  condensed  form — only  the  facts 
briefly  as  possible  and  let  the  papers  play  them  up  in  their 
own  way. 

Chicago's  News  Bureau 

So  we  began  to  organize  what  we  called  the  news  bureau 
under  the  management  of  a  newspaper  man.  This  newspaper 
man  took  everything  that  happened  in  the  daily  conduct  of  the 
association  affairs  and  tried  to  make  a  news  story  out  of  it. 
We  kept  that  up  for  two  years  and  the  news  bureau  was  suc- 
cessful, but  it  finally  became  an  old  story.  While  we  are  still 
conducting  a  news  bureau,  we  found  that  the  newspapers  did 
not  come  around  to  see  us  as  frequently  as  before,  so  we  gradu- 
ally switched  to  some  other  line.  Throughout  all  of  our  work 
we  have  tried  to  get  the  best  out  of  the  one  great  asset  of  news 
producing.  To  bring  it  down  to  date,  we  have  78  sub-divisions 
in  the  association.  We  have  classified  our  memberships  in  78 
trades  and  professions.  We  have  the  ways  and  means  commit- 
tee, of  which  some  of  you  know,  which  is  really  the  house  rep- 
resentatives of  the  78  sub-divisions,  just  as  the  House  at  Wash- 
ington is  the  representative  of  the  states  in  the  Union.  We 
elect  ^ye  men  from  each  sub-division  each  year.  Sixty-five  men 
meet  once  a  week  and  listen  to  some  program.  Up  to  this  year 
these  programs  are  made  up  on  any  interesting  subject  that  we 
can  find.  Whenever  we  found  a  visitor  in  town  from  any  for- 
eign land  whom  we  thought  had  a  story  to  tell,  we  invited  him 
to  tell  it.  Some  of  the  most  interesting  programs  naturally 
were  the  result  of  these  meetings.  This  year  we  decided  to 
try  the  publicity  feature.  So  we  invited  each  of  the  78  sub- 
divisions to  prepare  a  story,  a  newspaper  article,  on  their  own 
line  of  business.  Real  estate  men  write  up  real  estate  business 
in  Chicago,  and  so  on.  This  was  done  in  the  office  because  they 
could  get  together  to  discuss  what  were  the  news  features  of 
their  business.  They  were  asked  to  tell  the  story  of  Chicago 
real  estate  in  the  most  interesting  phase  possible  It  was  then 
submitted  to  the  office,  where  the  two  or  three  newspaper  men 
in  the  office  took  it  and  dressed  it  up  again  and  it  was  re- writ- 


NEWS  VALUE  IN  ORGANIZATION  PUBLICITY.  273 

ten,  re-edited  to  suit  them,  turned  over  to  a  body  of  men  called 
the  ways  and  means  council  of  eleven  men,  carefully  chosen 
from  the  78  sub-divisions,  representative  of  the  whole  associa- 
tion. They  were  asked  to  edit  it,  write  it  up  again  carefully, 
exclude  all  questions  of  politics,  etc.,  and  the  result  was  a  good 
story  on  real  estate.  So  that  story,  to  the  extent  of  say  1,500 
words,  was  read  before  the  ways  and  means.  A  good  reader 
was  selected  to  read  the  story.  Copies  of  that  article  were  sent 
to  every  newspaper  and  to  every  trade  paper  in  that  particular 
line  of  business,  while  one  New  York  paper  took  these  stories 
by  telegraph  ever}^  Sunday,  sometimes  printing  them  in  full, 
and  other  times  paragraphs  from  them. 

The  Creation  of  News 

As  the  result  we  have  written  up  nearly  one-half  of  all 
of  our  trades  in  Chicago.  This  will  form  a  volume  at  the  end 
of  the  year.  We  will  continue  that  until  we  have  gone  the 
rounds  of  the  78  sub-divisions,  and  go  again  until  we  wear  out 
the  subject.  As  long  as  we  can  furnish  news,  the  papers  will 
take  it.  No  matter  how  dry  it  may  be  at  first  glance,  you  will 
find,  if  it  is  carefully  written,  always  something  interesting. 
A  string  of  figures  that  is  astounding,  or  a  string  of  facts  that 
never  before  were  told,  if  they  bear  the  stamp  of  association 
approval,  they  are  regarded  as  authentic  and  they  are  filed  in 
the  newspaper  offices  for  future  reference,  so  we  found  it  to  be 
a  great  publicity  "stunt''  as  we  call  it.  Briefly,  out  of  tliat 
system  we  have  received  to  date  some  2,500  articles  of  daily 
newspapers — 500  columns  of  news  space.  And  you  can  figure 
up  what  500  columns  of  news  space  would  cost  you  at  fl.OO 
a  line.  You  will  find  it  runs  into  good  money.  I  believe  the 
system  can  be  applied  in  almost  any  city  because  every  city 
has  its  strong  points.  The  newspapers  want  news.  If  you 
give  them  news,  you  make  them  your  friends ;  if  you  try  to  get 
stuff  into  the  newspapers  that  is  not  news,  you  wear  out  your 
welcome  in  the  newspaper  shop,  and  if  you  try  to  put  things 
over  on  the  city  editor  you  make  him  an  enemy,  whether  ycm 
succeed  or  whether  you  fail;  in  other  words,  he  will  have  no 
further  use  for  that  particular  source  of  alleged  news.  If  you 
get  the  newspaper  man's  point  of  view  and  give  him  what  he 
wants,  it  will  serve  your  needs  and  his. 

Now  to  digress  from  that  particular  talk  on  the  newspa- 


274  METHODS  OF  ORGANIZATION  AND  OPERATION. 

per  man  and  speak  of  some  of  the  other  things:  We  never 
overlook  any  opportunity  to  present  any  association  matter  to 
the  newspapers  that  is  acceptable  to  the  newspapers  as  news. 
We  consider  a  half -inch  of  space  on  the  first  page  of  a  news- 
paper worth  more  to  us  from  a  publicity  standpoint  than  a  half- 
page  of  displa}^  on  an  inside  page,  and  the  difference  is  that 
the  half -inch  cost  you  nothing  while  the  half -page  cost  you 
$500.  We  have  never  made  it  a  rule  to  buy  display  space  in 
the  newspaper.  We  have  no  rule  against  it  and  whenever  oc- 
casion arises  where  we  believe  it  Avill  be  to  our  advantage  to 
buy  space,  we  have  occasionally  done  so.  On  one  occasion  in 
a  campaign  for  public  improvement,  we  spent  five  thousand 
dollars  in  one  day  for  newspaper  publicity,  and  we  never  re- 
gretted it,  but  with  that  five  thousand  dollars  (it  was  a  page 
in  each  of  the  daily  papers),  we  got  columns  of  newspaper  men- 
tion which  was  worth  more  to  us  than  display.  The  news  cost 
us  nothing  and  the  display  cost  us  |5,000.  I  would  have  much 
preferred  one-tenth  of  the  news  mentioned  to  the  display. 


CHAPTER  XVI. 
Financing  Commercial  Organizations 

Some  of  the  Problems  of  Organization  Finance 
By  CARL  DEHONEY 

Every  commercial  organization  should  seek  to  establish 
a  thoroughly  modern  and  business-like  financial  department, 
in  charge  of  a  competent  man,  one  skilled  in  the  art  of  getting 
money.  There  are  plenty  men  of  ability  in  other  branches  of 
organization  work  who  cannot  earn  their  salt  collecting  dues 
from  weak-kneed  members.  There  are  others  who  cannot  make 
a  speech  to  an  audience,  perhaps,  but  are  able  to  extract  money 
from  the  biggest  knocker  in  town,  or  talk  the  worst  backslider 
into  paying  admission  to  the  mourner's  bench.  Such  a  man, 
having  also  a  know^ledge  of  businesslike  office  methods,  book- 
keeping and  the  like,  is  an  ideal  fellow  for  financial  secretary. 
Money  gained  by  jjroper  conservation  of  revenues,  by  realizing 
every  cent  possible  from  membership  dues  and  all  incidental 
sources  of  income,  by  discounting  bills  for  prompt  payment 
wherever  possible,  and  by  getting  interest  on  organization 
funds,  is  just  as  good,  or  rather  better,  than  an  equal  amount 
of  new  subscriptions.  Such  methods  invite  respect  and  con- 
fidence from  business  men  and  make  it  easier  to  develop  addi- 
tional organization  funds. 

The  survival  of  the  fittest  is  a  rule  of  life's  battle,  and  it 
will  be  borne  out  in  organization  work.  All  over  the  United 
States  cities  are  bubbling  over  with  enthusiasm  for  w^ork 
through  organization  machinery.  Commercial  bodies  have  been 
developed  by  thousands.  The  disbursements  of  these  organi- 
zations run  annually  into  many  millions.  Their  work,  on  the 
whole,  is  good,  and  in  many  ways  is  splendid.  But  in  too 
many  there  is  a  lack  of  business  methods  for  conserving  rev- 
enues, keeping  costs  systems  and  cutting  down  waste.  There 
is  as  yet  no  uniform  system  of  accounting.  Every  organization 
has  its  own  system.  What  is  publicity  in  one  is  industrial  work 
in  another,  and  so  on.  Comparisons  cannot  be  made  with  ac- 
curacy. 

275 


276  METHODS  OF  ORGANIZATION  AND  OPERATION. 

Budget  System 

Every  commercial  organization  should  thoroughly  classify 
its  revenues,  know  its  cost  and  follow  a  budget  made  up  at  the 
beginning  of  the  fiscal  year  as  a  well  regulated  municipal  or 
industrial  corporation. 

The  organization  that  is  going  to  live  and  do  the  most  good 
in  the  future  is  that  organization  which  seeks  to  make  its  finan- 
cial plan  a  solid  one,  that  adopts  scientific  methods  in  going 
after  revenue  and  in  conducting  its  business  affairs  and  at 
the  same  time  seeks  to  produce  lasting  and  practical  results  in 
all  branches  of  its  promotion  work.  We  are  going  to  see  the 
passing  of  much  that  is  only  bizarre  and  ephemeral  in  organi- 
zation effort,  and  we  must  give  such  food  to  enthusiasm  that 
will  keep  it  strong-nerved,  steady  and  fighting  on. 

The  situation  in  our  commercial  organizations  today  in 
regard  to  accounting,  cost  systems,  etc.,  is  similar  to  that  which 
has  prevailed  in  the  municipal  governments  of  our  cities.  It 
has  not  been  possible  in  the  past  to  accurately  compare  the 
financial  reports  of  any  one  city  with  others  in  its  class.  Now, 
thanks  to  the  work  of  the  National  Municipal  League,  the  fed- 
eral government  and  other  agencies,  order  is  beginning  to  come 
out  of  chaos  in  American  municipal  finances.  I  believe  one  of 
the  things  this  association  could  well  take  up  and  recommend 
would  be  the  working  out  of  some  plan  for  standardizing,  as 
far  as  possible,  the  accounting  and  business  methods  of  com- 
mercial organizations. 

Sources  of  Revenue  Classified 

The  revenues  of  the  average  commercial  body  may  be  said 
to  come  from  the  following  classes  of  men : 

1.  Those  who  expect  to  receive  an  indirect  benefit  from  in- 
creased property  values,  increased  business  and  other 
results  of  good  organization  work. 

2.  Those  who  expect  to  receive  a  direct  benefit  from  some 
specific  department,  such  as  a  convention  bureau,  traf- 
fic bureau,  etc. 

3.  Those  who  are  interested  in  the  direct  benefit  from 
facilities  afforded,  such  as  a  club  house,  a  grain  ex- 
change, etc. 

4.  Those  who  contribute  entirely  from  civic  patriotism. 
It  would  be  seen  that  the  element  of  self-interest  enters  in 


BUDGETS  FOR  COMMERCIAL  ORGANIZATIONS.  277 

throe  out  of  the  four  classes,  or  a  great  majority.  We  should 
remember  that  self-interest  is  a  different  thing  from  selfish- 
ness. The  progTess  of  the  world  has  probably  been  due  more 
to  intelligent  self-interest  than  to  any  other  cause. 

The  ideal  organization,  therefore,  is  one  appealing  to  all 
the  classes  mentioned.  I  cannot  conceive  of  a  better  all-around 
plan  of  financing  a  commercial  organization  than  one  which 
opens  sources  of  profitable  revenue  from  all  of  these  classes. 
Its  basis  Avould  be  a  permanent  continuing  membership,  with 
annual  dues  of  at  least  |25  a  year,  buttressed  by  funds  raised 
for  special  purposes  on  contracts  covering  a  period  of  three, 
four  or  five  years,  given  by  various  classes  of  members  directly 
interested  in  some  department.  The  board  of  directors  should 
have  power  to  supplement  vspecial  funds  from  the  general  fund, 
but  money  raised  for  a  specific  purpose  should  be  spent  for 

that  purpose.  ^  r      ,  r^      ,      -r.      ^ 

Refund  Surplus  Pro  Rata 

Many  organizations  make  a  mistake  of  not  being  thorough- 
ly honest  with  their  members  or  subscribers.  For  instance :  A 
special  fund  is  raised  for  the  entertainment  of  a  particular  con- 
vention by  a  committee  on  which  the  organization  and  the  local 
interests  affected  have  representation.  There  is  a  small  re- 
maining surplus.  Somebody  moves  to  have  the  surplus  turned 
over  to  the  chamber  of  commerce  for  its  general  fund,  or  di- 
verted elsewhere.  This  is  not  right  and  it  is  not  good  organiza- 
tion policy.  That  money  belongs  to  the  subscribers  and  it 
should  be  returned  to  them  pro  rata.  If  more  organizations 
would  folloAv  that  method  they  would  not  have  so  much  trouble 
raising  special  funds. 

In  towns  having  no  live  organization,  or  where  the  work 
has  been  at  a  low  ebb,  and  it  is  desirable  to  organize  a  new 
movement,  the  best  plan  is  the  three-year  contract.  The  rais- 
ing of  such  a  fund  insures  stability  for  a  period  sufficient  to 
show  results  to  procure  renewals  and  lay  the  basis  for  perma- 
nent income.         ^^    .        „    ,    ^      r  ^. 

Various  Methods  of  Financing 

The  subscriber  is  allowed  to  indicate  the  class  in  which 
he  is  willing  to  be  placed  for  assessment.  While  this  particular 
plan  has  not  been  worked  out,  it  contains  the  germ  of  truth 
which  may  solve  the  problem.  It  opens  up  interesting  possi- 
bilities in  many  directions.  Somebody,  let  us  hope,  will  yet 
produce  a  plan  to  include  the  holder  of  larger  property  inter- 


278  METHODS  OF  ORGANIZATION  AND  OPERATION. 

ests  in  our  cities,  who  have  been  made  rich  by  the  growth  of 
these  cities,  to  more  readily  realize  their  self-dnterest  in  de- 
velopment work.  Up  in  Saskatoon,  where  a  million-dollar  fund 
was  recently  raised,  I  am  told  that  subscriptions  of  |20,000 
each  were  made  by  five  young  men  who  had  gone  to  north- 
western Canada  a  few  years  ago  and  made  fortunes  in  gold  in- 
vestment and  increase  in  land  values  due  to  the  city's  upbuild- 
ing. While  we  can  hardly  expect  many  such  contributions  in 
older  and  more  conservative  centres,  what  a  great  work  could 
be  accomplished  if  the  men  most  directly  interested,  the  hold- 
ers of  the  real  estate,  would  come  nearer  doing  their  part! 

Budgets  for  Commercial  Organizations 

By  A.  HEATH  ONTHANK 

In  these  days  of  efficiency  and  standardized  business  prac- 
tices it  is  strange,  indeed,  that  organizations  composed  of  the 
leading  business  men  of  the  communities  should  be  behind  the 
times  in  the  conduct  of  their  own  affairs.  It  is  only  recently 
that  any  agitation  has  taken  place  to  bring  chambers  of  com- 
merce to  the  level  of  other  commercial  and  industrial  enter- 
prises in  the  administration  of  their  finances.  Whether  it  is 
because  the  presumed  difficulty  connected  with  the  variable 
work  of  commercial  organizations,  or  whether  it  is  because 
these  bodies  have  been  so  busy  remodelling  the  affairs  of  the 
world  that  they  have  had  no  time  for  their  own,  it  is  true,  nev- 
ertheless, that  a  great  many  chambers  of  commerce,  and  many 
of  the  foremost  ones,  have  made  no  attempt  to  plan  ahead  the 
expenditure  of  their  income. 

Today  we  hear  much  about  budgets  for  the  federal  gov- 
ernment and  for  municipalities.  The  body  politic,  at  any  rate, 
has  become  alive  to  the  necessity  of  a  stricter  accounting  for 
the  methods  of  disbursing  its  moneys,  and  this  wave  of  public 
opinion  seems  at  last  to  have  reacted  on  commercial  organi- 
zations, so  that  they,  the  usual  makers  and  leaders  of  popular 
sentiment,  are  now  endeavoring  to  catch  up  with  it  in  the 
matter  of  budgets. 

Budget-making  is,  in  essence,  no  more  than  forehanded- 
ness,  a  look  ahead  to  future  events  and  contingencies.  A  busi- 
ness man  who  sees  only  a  week  or  month  before  him  has  about 
as  much  chance  of  survival  as  any  individual  who  at  present 


BUDGETS  FOR  COMMERCIAL  ORGANIZATIONS.  279 

would  trust  to  the  ravens  for  his  sustenance.  Why,  then, 
must  commercial  organizations  feel  that  they  are  exempt — a 
class  apart  from  all  others? 

Chambers  of  commerce,  boards  of  trade,  commercial  clubs, 
or  whatever  they  may  be  called,  have  two  general  fields  of  ac- 
tivity— short-time  projects  and  long-time  enterprises.  The 
former  may  take  only  a  week,  but  perhaps  a  year  or  more ;  the 
latter  are  certain  to  be  carried  through  a  number  of  years. 
In  any  event,  it  is  clear  that  there  are  certain  activities  which 
must  be  carried  along  from  one  fiscal  year  to  another,  and  for 
the  welfare  of  which  a  certain  amount  of  pre-planning  must  be 
done.  Are  they  to  be  left  alone  to  pursue  their  lonely  courses 
in  haphazard  fashion,  or  are  they  to  have  definite  mile-posts 
to  reach  each  year,  helped  along  by  a  knowledge  that  there  is 
a  certain  amount  of  monetary  fuel  which,  if  judiciously  ex- 
pended, will  bring  them  to  their  goals? 

There  are  several  very  obvious  advantages  of  a  budgetary 
system  which  should  be  stated  at  this  point. 

In  the  first  place,  budget  making  causes,  ipso  facto,  pre- 
planning. It  is  quite  apparent  that  if  a  reason  for  every  ex- 
penditure to  be  made  during  the  forthcoming  year  must  be 
given  at  the  start  of  that  period,  there  must  be  some  sort  of 
preconceived  ideas  concerning  future  activities.  A  committee 
with  work  just  begun  must  plan  the  extension  or  completion  of 
its  labors  with  an  eye  to  every  possible  eventuality;  a  bureau 
or  division  entering  or  carrying  forward  a  specific  field  of  un- 
dertakings must  work  out  its  ways  of  procedure,  their  costs, 
and  their  limitations.  It  is  entirely  unnecessary  to  point  out 
in  detail  the  beneficial  results  of  such  pre-planning  on  commit- 
tees, bureaus,  and  officers. 

Secondly,  a  budget  gives  to  the  commercial  organization 
as  a  whole,  a  definite  basis  of  action.  The  officers  know  what 
is  to  be  accomplished,  know  that  there  is  the  wherewithal  to 
do  so,  and  are  thus  free  to  turn  their  attention  to  new  plans, 
administrative  work,  or  emergencies. 

Thirdly,  through  the  "pruning"  process  of  the  ratification 
body,  the  work  of  each  committee  or  bureau  is  brought  into  its 
proper  place  in  the  formation  of  a  well-rounded  plan  of  work 
for  the  whole  organization.  Pressing  activities  are  given  a 
clear  track;  minor  projects  are  sidetracked  when  and  where 
necessary.    The  president  who  has  a  "squint"  in  favor  of  city 


280  METHODS  OF  ORGANIZATION  AND  OPERATION. 

planning  is  not  allowed  to  dump  most  of  the  contents  of  the 
treasury  into  his  pet  schemes  when  it  is  much  more  urgent  that 
the  organization  devote  all  its  energies  for  a  short  time  to  a 
convention.  Thus,  the  budgetary  system  weighs  all  plans  in  the 
balance,  and  chooses  the  most  beneficial  for  immediate  empha- 
sis. 

It  must  not  be  thought,  however,  that  the  budget  would 
cause  work  in  most  lines  to  be  dropped  while  the  favorite 
schemes  of  the  moment  were  being  pushed.  Per  contra,  the 
fourth  advantage  to  be  noted  is,  that  while  the  more  important 
plans  are  receiving  most  attention,  the  others  are  all  being 
carried  along  according  to  a  well-conceived  plan  of  develop- 
ment. The  budget  permits  a  judicious  expenditure  of  income 
on  the  main  work,  and,  at  the  same  time,  is  nursing  the  other 
enterprises  along  to  the  point  when  they  shall  become  the  chief 
activities. 

Fifthly,  if  the  budget  is  well  planned,  it  will  provide  for 
emergency  actions  as  well  as  for  preconceived  plans. 

And  sixthly,  the  financial  system  of  the  organization  is 
put  on  a  firm  and  rational  basis  of  a  proper  relation  of  income 
and  expenditure.  Insolvency  is  out  of  the  question  and  the 
members  are  sure  that  their  dollars  are  being  expended  in  the 
most  beneficial  manner. 

Any  idea  that  the  system  of  budget  making  is  applicable 
only  to  large  commercial  organizations  whose  incomes  run  into 
the  tens  of  thousands  is  entirely  erroneous.  It  is  true  that 
where  large  sums  of  money  are  involved  strict  planning  and 
accounting  are  necessary,  but  it  is  no  more  true  for  an  organi- 
zation of  that  sort  than  it  is  for  a  small  chamber  of  commerce, 
where  the  money  received  must  be  put  to  the  most  advantageous 
use  in  order  to  see  results  of  any  kind.  In  either  case  the  ad- 
vantages as  enumerated  above  accruing  from  a  strict  adherence 
to  a  system  of  budgets  are  potent  factors  in  the  successful  com- 
pletion of  the  functions  of  the  organization. 

This  report,  therefore,  will  aim  to  set  forth  methods  of 
budget-making  for  commercial  organizations  which  will  be 
applicable  to  the  small  as  well  as  the  great. 

Present  Systems  of  Budget-Making  in  Commercial  Organizations 

The  information  on  which  this  study  was  made  is  based  on 
a  questionaire  w^hich  was  sent  out  to  all  organizations  which 


BUDGETS  FOR  (X)MMERCIAL  ORGANIZATIONS.  281 

were  known  to  use  the  budget  system,  a  copy  of  which  is  pre- 
sented herein.  (Exhibit  A.)  From  these  organizations  ninety 
replies  were  received,  giving  results  varying  widely  in  their 
scope  of  enlightenment.  The  result  has  been,  however,  to  shed 
a  broad  light  upon  the  differing  methods  of  constructing 
budgets  in  these  organizations. 

A.  Income 

A  great  majority  of  the  commercial  organizations  from 
which  data  were  obtained  received  dues  of  fixed  amounts  ac- 
cording to  special  classes  of  individuals  and  firms.  The  dues 
varied  from  nothing  at  all — in  which  case  the  organization  was 
supported  by  a  special  city  tax — or  $5.00  annually — in  the  case 
of  organizations  whose  members  paid  dues — to  as  high  as  $3,000 
— in  the  case  of  a  contributing  concern  which  paid  what  it  be- 
lieved the  services  of  the  commercial  organization  were  worth. 
Because  of  the  varying  sizes  and  functions  of  these  organiza- 
tions, it  would  be  misleading  to  endeavor  to  find  the  average  or 
normal  rate  of  dues,  since  comparability  is  out  of  the  question. 

B.  Method  of  Preparing  Budget  Estimates. 

Methods  of  preparing  estimates  for  the  annual  budget  vary 
widely;  there  are  at  least  nine  different  ways  in  which  esti- 
mates of  the  financial  needs  of  organizations  come  into  being. 
Over  one-half  of  the  organizations  which  replied  to  the  ques- 
tions concerning  the  preparation  of  estimates,  however,  start 
the  planning  of  Avork  and  approximation  of  necessary  expendi- 
tures in  the  committees  or  bureaus.  The  usual  routine  is  for 
the  committee  chairman  or  bureau  head  to  call  a  meeting  of  his 
unit  for  the  purpose  of  laying  down  plans  and  estimating  the 
amounts  necessaiy  for  their  consummation  in  the  coming  year. 
When  this  is  done,  it  is  often  the  custom  for  the  committee 
chairman  to  confer  with  some  higher  authority,  and  in  such  a 
case,  the  higher  authority  may  be  the  executive  secretary,  the 
finance  committee,  the  executive  committee,  or  even  the  board 
of  directors ;  practice  varies  so  widely  that  it  is  impossible  to 
lay  down  any  general  rule  for  this  custom. 

The  detail  with  which  these  estimates  are  prepared  is  again 
widely  divergent  in  the  reporting  organizations.  For  the  most 
part,  however,  the  estimate  is  made  out  only  in  a  very  general 
fashion ;  only  nineteen  out  of  fifty -three  organizations  claimed 
any  amount  of  detail  in  their  estimate.    In  a  great  many  cases 


282  METHODS  OF  ORGANIZATION  AND  OPERATION. 

it  is  evident  that  the  extent  of  the  estimates  is  reached  when 
fixed  charges  of  salaries,  rent,  heat,  light,  etc.,  are  set  down. 

Most  organizations  in  constructing  their  budgets  base  the 
estimates  on  a  definite  schedule  of  work  for  the  ensuing  year. 
These  are  naturally  made  out  on  the  basis  of  the  work  and  ex- 
penditures of  the  preceding  year,  modified  by  the  work  which 
is  foreseen  for  the  coming  year.  These  vary  from  being  "more 
or  less''  in  detail  to  a  rigid  and  specific  schedule  of  tasks  worked 
out  on  anticipated  proposals  and  committee  or  bureau  work  in 
process  of  completion.  It  is  the  general  custom  where  such 
schedules  of  work  are  prepared  to  have  them  made  out  by  com- 
mittees, under  the  supervision  of  a  higher  authority,  e.  g.,  the 
secretary,  finance  committee  or  board  of  directors. 

C    Ratification  of  Budget  Estimates. 

When  it  comes  to  ratification  of  the  estimates  it  is  again 
quite  evident  that  there  is  one  method  more  popular  than  any 
two  or  three  others,  viz :  ratification  by  the  board  of  directors. 
Out  of  sixty-three  organizations  answering  the  questions  in  this 
field,  twenty-five  ratified  their  budget  estimates  through  the 
board  of  directors;  fifteen  through  the  finance  committee  plus 
the  board  of  directors ;  eight  through  the  secretary  and  board  of 
directors;  and  five  by  means  of  all  three  of  the  above  named 
agencies.  In  other  Avords,  it  may  be  stated  safely  that  it  is 
general  practice  for  the  board  of  directors  to  possess  the  power 
of  finally  ratifying  the  budget. 

The  board  of  directors  and  its  subsidiary  part,  the  execu- 
tive committee,  also  play  the  chief  roles  in  controlling  the  ex- 
penditure of  budgeted  funds.  Twenty-seven  out  of  forty-eight 
organizations  thus  controlled  expenditures,  and  ten  more  ad- 
ded the  control  of  the  secretary  to  either  control  by  the  board 
of  directors  or  executive  committee. 

Over  three-quarters  of  the  reporting  organizations  finance 
the  work  of  their  special  committees  out  of  their  general  funds 
— the  unappropriated  surplus  after  provision  for  the  budget 
expenditures  has  been  made.  Several  of  these  chambers  of  com- 
merce, however,  are  very  willing  to  resort  to  special  subscrip- 
tions to  eke  out  the  general  fund,  and  quite  a  few  rely  on  this 
method  entirely.  But  few  organizations  provide  a  special  fund 
for  financing  the  work  of  special  committees. 

Twenty-six  out  of  sixty-six  organizations  pleaded  guilty 


BUDGETS  FOR  COMMERCIAL  ORGANIZATIONS.  283 

to  the  possession  of  a  contingent  fund,  and  it  is  evident  that 
among  these  twenty-six,  the  uses  for  that  fund  are  very  di- 
vergent. Some  use  it  for  emergencies  and  abnormal,  extraordi- 
nary expenditures;  some  for  payment  of  small  cash  expenses; 
some  as  a  nest  egg;  and  one  even  used  it  as  a  building  fund. 
Apparently  contingent  funds. are  not  yet  in  vogue. 

It  is  almost  useless  to  try  to  find  commercial  organizations 
with  special  forms  of  budget  accounting  or  of  budget  con- 
struction. Most  of  the  reporting  organizations  proudly  state 
that  they  have  the  most  approved  bookkeeping  methods  and  that 
the  voucher  system  is  used,  ^^hich  is  not  to  be  marvelled  at 
greatly,  considering  the  character  of  their  memberships. 

The  conclusions  that  may  be  drawn  from  this  questionaire 
are  that  there  are  many  commercial  organizations  which  claim 
to  run  on  a  budget  basis,  but  for  the  most  part  their  systems 
are  those  in  name  only;  and  there  are  many,  many  more  or- 
ganizations which  claim  no  relation  to  a  budget  system  whatso- 
ever. It  is  mainly  for  the  benefit  of  these  latter  chambers  of 
commerce  that  this  study  of  budgets  in  commercial  organiza- 
tions isi  being  made,  and  it  is  with  the  hope  that  the  conclu- 
sions which  are  set  forth  her-ein  will  help  them  to  realize  the 
need  of  a  budget  system,  and  that  the  methods  proposed  will 
make  the  road  easier,  that  some  attempt  is  undertaken  to  throw 
niore  light  on  this  important  subject. 

.       ^  Relation  of  Budgets  to  Working  Plans 

A.    Income. 

Very  little  difference  in  construction  of  the  budget  is  made 
by  the  fact  that  an  organization  has  either  fixed  or  variable 
dues.  In  either  case  the  income  for  the  future  year  may  be 
approximated  with  a  large  degree  of  accuracy,  and  if  any  un- 
certainty is  felt  it  is  easy  to  slightly  underestimate  the  income. 
It  is  advisable  to  study  the  past  records  of  deaths,  resigna- 
tions, and  members  dropped  for  non-payment  of  dues,  in  order 
to  find  the  rate  of  mortality  in  the  membership.  One  organi- 
zation is  said  to  write  off  10  per  cent  of  the  income  of  its 
membership  each  year.  This  figure,  with  an  estimate  of  new 
members  each  year,  derived  from  a  similar  study  of  the  records, 
should  give  a  fairly  accurate  approximation  of  income  to  be 
derived  from  members  during  the  forthcoming  year.  The  same 
procedure  should  be  followed  in  estimating  the  income  from 
bureaus,  divisions  and  miscellaneous  sources. 


284  METHODS  OF  ORGANIZATION  AND  OPERATION. 

This  estimation  of  the  income  is  a  matter  for  consideration 
by  the  finance  committee.  It  would  be  well,  if  the  general  se<!- 
retary  and  the  treasurer  are  not  members  of  this  committee, 
to  have  them  sit  with  it  when  estimates  of  income  are  being 
prepared. 

B.    Preparation  of  Estimates. 

Since  the  committees  or  bureaus  are  the  chief  means  of 
accomplishing  the  work  of  the  commercial  organization,  it  is 
only  natural  that  they  should  be  the  bodies  which  prepare  the 
schedules  of  work  for  the  coming  year,  and  estimate  the  money 
needed  to  carry  out  that  work.  For  this  reason  the  primary 
construction  of  budget  estimates  and  schedules  of  work  should 
be  left  to  the  committees  and  bureaus. 

At  this  point  it  is  advisable  to  impress  upon  all  commer- 
cial organizations  the  need  and  desirability  of  having  a  defi- 
nite schedule  of  work  for  each  bureau  and  committee.  In  the 
first  place,  the  projects  which  are  being  carried  over  from  year 
to  year  require  constant  attention  in  order  that  they  may  be 
brought  to  consummation  in  the  shortest  practicable  time.  If 
a  certain  date  be  set  for  the  completion  of  each  part  of  the 
work  and  adhered  to  as  closely  as  possible,  it  is  much  more 
probable  that  the  work  will  be  accomplished  smoothly  and  di- 
rectly, rather  than  in  jerks  and  starts,  if  it  is  left  to  personal 
inclinations.  Furthermore,  a  small  portion  of  a  committee 
working  steadily  on  one  part  of  a  general  scheme  of  work  leaves 
the  remainder  of  the  committee  free  to  take  up  emergency  work 
or  new  work  started  during  the  year.  All  this  can  best  be  ac- 
complished by  making  out  a  complete  schedule  of  work,  on  a 
time  basis,  if  necessary,  and  keeping  certain  sub-divisions  of 
the  committee  or  bureau  steadily  at  work  until  that  particular 
job  is  accomplished. 

About  a  month  before  the  beginning  of  the  fiscal  year,  the 
chairman  of  the  finance  committee  should  address  a  letter  to 
the  chairmen  of  all  standing  committees,  special  committees 
holding  over  into  the  next  year,  and  bureaus,  requesting  them 
to  submit  before  a  certain  date,  a  plan  of  work  for  the  coming 
year  and  an  estimate  of  the  amount  of  funds  which  will  prob- 
ably be  required  for  the  completion  of  this  schedule  of  work. 
Included  with  this  request  should  be  a  list  showing  (1)  esti- 
mates for  past  year  in  detail;  (2)  expenditures  for  past  year 
in  detail;  (3)  and  a  place  for  estimates  for  the  coming  year. 


BUDGETS  FOR  COMMERCIAL  ORGANIZATIONS.  285 

The  chairmen  of  the  committees  or  bureaus  should  imme- 
diately call  meetings  of  their  bodies  to  consider  the  work  to  be 
done  during  the  next  year,  and  the  amount  of  money  neces- 
sary. These  estimates  should  be  worked  out  in  as  great  detail 
as  possible,  by  considering  under  each  project  proposed  as  an 
activity  any  and  all  causes  of  expenditure  connected  therewith, 
and  any  contingency  which  may  possibly  occur.  These  esti- 
mated expenditures  should  not  be  thrown  together  in  a  lump 
sum ;  it  is  very  necessary  for  the  guidance  of  the  finance  com- 
mittee and  board  of  directors  that  as  many  items  as  possible 
be  classified  and  divided  up.  A  standard  form,  for  bureaus,  at 
least,  would  be  advantageous. 

When  the  estimates  have  been  completed,  they  should  be 
sent  at  once  to  the  chairman  of  the  finance  committee — the 
chairman  of  committees  and  bureaus  retaining  a  copy  of  their 
estimates  for  their  own  use.  As  soon  as  practicable  after  the 
date  fixed  by  the  finance  committee  for  the  submission  of  esti- 
mates, the  chairman  of  the  finance  committee  should  call  a 
joint  meeting  of  the  finance  committee  and  of  all  the  chairmen 
of  committees  and  bureaus  which  have  submitted  estimates. 
It  would  be  wise  for  the  general  secretary  and  treasurer  to  at- 
tend this  meeting.  The  finance  committee  has  meanwhile,  as 
stated  above,  worked  out  an  approximate  statement  of  the 
income  of  the  organization  for  the  ensuing  year.  The  commit- 
tee and  bureau  chairmen  should  then  be  requested  to  state  ex- 
plicitly their  plan  of  work  for  the  coming  year,  the  estimated 
funds  necessary,  the  importance  of  any  or  all  parts  of  this  work, 
and  reasons  why  it  should  be  carried  through.  The  secretary 
of  the  finance  committee,  should,  of  course,  note  down  these 
facts  in  full. 

This  process  of  joint  conference  of  chairmen  and  finance 
committee  has  several  very  important  results.  In  the  first 
place,  all  the  cards  are  laid  on  the  table.  Each  chairman  sees 
what  other  committees  are  doing  and  what  his  own  is  doing 
in  comparison.  All  the  chairmen  get  a  knowledge  of  the  work 
of  the  organization  as  a  whole,  and  of  the  place  of  their  own 
committees  in  such  work.  It  is  a  very  educational  proceeding. 
Secondly,  it  should  stir  up  a  spirit  of  emulation  among  commit- 
tee chairmen;  not  a  race  as  to  which  can  spend  most  money, 
but,  if  the  finance  committee  handles  the  situation  well,  a  con- 
test as  to  which  chairman  will  have  the  most  beneficial  and 


286  METHODS  OF  ORGANIZATION  AND  OPERATION. 

most  substantial  plan  of  work  and  can  make  his  dollars  go 
farthest.  Thirdly,  it  allows  the  finance  committee  to  compare 
the  ability  of  different  chairmen  and  committees. 

In  order  that  the  committee  and  bureau  chairmen  may  then 
understand  the  financial  position  of  the  organization,  the  chair- 
man of  the  finance  committee  should  also  make  a  report  on  the 
estimated  income,  and  the  probable  policy  to  be  pursued  during 
the  coming  year.  In  this  way  the  committee  chairmen  may 
see  exactly  where  they  stand,  and  whether  their  requests  for 
funds  are  too  liberal  or  must  be  cut  down.  This  idea  of  laying 
all  the  cards  upon  the  table,  or  blue  sky  proceedings,  seems  to 
be  the  best  possible  method  of  securing  harmonious  action,  and 
is  strongly  recommended. 

fj.    Ratification  of  Estiynaies. 

Having  secured  the  plan  of  work  of  each  committee  and 
bureau,  the  estimated  funds  necessary  to  carry  out  that  work, 
and  the  reasons  therefor,  the  finance  committee  is  now  in  a 
position  to  proceed  with  its  function  of  culling  out  the  more 
important  projects  for  emphasis,  pruning  the  estimates,  and 
fitting  expenditures  to  income.  This  should  be  done,  of  course, 
with  great  care,  and  with  due  consideration  of  several  factors: 

(1)  The  necessity  of  providing  for  fixed  charges  and  fixed 

operating  expenses ; 

(2)  The  necessity  of  emphasizing  the  most  important 

functions ; 

(3)  The  desirability  of  completing  certain  projects  im- 

mediately ; 

(4)  The  necessity  of  carrying  along  many  minor  under- 

takings ; 

(5)  The  necessity  of  providing  an  adequate  reserve  for 

emergencies  and  special  committees; 

(6)  The  necessity  of  absolute  impartiality. 

It  seems  best  for  the  finance  committee  to  be  the  chief 
ratifying  body,  doing  its  work  so  thoroughly  that  the  other 
ratifying  body,  the  board  of  directors,  shall  have 'little  to  do 
but  set  its  stamp  of  approval  on  the  work  of  the  first  named 
committee.  For  this  reason  it  is  again  preferable  for  the  gen- 
eral secretary  and  treasurer  to  sit  with  the  finance  committee. 
This  body  should  have  the  privilege  of  calling  in  for  further 
conference  any  or  all  of  the  committee  or  bureau  chairmen,  for 
more  detailed  explanations. 


BUDGETS  FOR  COMMERCIAL  ORGANIZATIONS.  287 

When  the  work  of  the  finance  committee  has  been  com- 
pleted, the  budget  should  be  turned  over  to  the  board  of  direc- 
tors for  final  approval.  If  the  budget  has  been  made  out  in 
detail,  as  should  be  the  case,  the  work  of  the  directors  should 
be  easy,  and  the  budget  as  submitted  by  the  finance  committee 
should  be  ratified  practically  unchanged. 

In  order  that  the  continuity  of  committee  and  bureau  work 
shall  be  assured  from  year  to  year,  and  that  past  expenditures 
may  be  properly  coordinated  with  future  estimates,  it  is  highly 
advantageous  and  practically  essential  that  one  or  two  mem- 
bers of  each  committee  or  bureau  hold  over  on  that  body  from 
year  to  year. 

D.    Contingent  Fund. 

It  has  been  stated  that  a  budget  system,  properly  conduct- 
ed, provides  for  emergencies  as  well  as  fixed  future  projects, 
and  that  it  is  the  function  of  the  finance  committee  to  provide 
for  these  contingencies.  This  is  done  through  appropriating 
a  "contingent  fund." 

The  contingent  fund  is  the  elastic  element  of  the  budget 
system.  One  objection  to  a  budget  for  a  commercial  organiza- 
tion is  that  such  a  body  must  be  free  to  throw  the  weight  and 
force  of  its  funds  w^here  it  will,  or  into  any  hole  in  the  dike 
which  may  suddenly  occur.  Such  an  objection  is  not  valid  in 
case  a  contingent  fund  is  provided.  It  is  the  very  purpose  of 
such  a  fund  to  provide  money  to  meet  emergencies,  abnormal 
situations,  and  extraordinary  activities.  It  is  not  a  nest  e^gg^ 
an  untouchable  surplus,  a  building  fund;  it  is  a  safety  valve. 

Where  such  contingent  funds  have  been  provided,  the 
custom  has  been  to  make  them  about  ten  per  cent  of  the  total 
income.  This  percentage  must  not  vary  with  certain  situations ; 
it  should  be  larger  if  estimates  are  only  in  very  general  detail, 
or  if  the  organization  is  in  such  a  position  that  emergencies 
are  not  extraordinary,  but  normal ;  proper  plans  of  work,  how- 
ever, ought  to  care  for  such  variations.  The  contingent  fund 
may  be  smaller  in  cases  of  organizations  where  emergencies 
are  rare,  or  the  income  is  small  and  is  all  needed  for  regular 
work. 

Ordinary  common  sense  and  plain  forehandedness,  how- 
ever, demand  the  establishment  of  some  sort  of  a  contingent 
fund  in  budget  systems;  and  for  the  general  run  of  commer- 


288  METHODS  OF  ORGANIZATION  AND  OPERATION. 

cial  organizations,  ten  per  cent  of  the  total  income  is  a  suffi- 
cient amount. 

E,    Special  Committee  Appropriations. 

It  is  generally  the  case  that  during  the  course  of  any  year 
one  or  more  special  committees  are  appointed  which  need  a 
certain  amount  of  financing.  Naturally,  their  money  cannot 
come  out  of  the  budgeted  funds,  for  the  committees  provided 
for  need  their  own  allowances,  and  because  the  budget  cannot 
be  varied  at  every  new  change  of  the  weather.  How  then  are 
these  special  committees  to  be  financed? 

Immediately  after  appointment  of  such  a  committee  the 
general  secretary  should  call  it  together,  and  should  plan  out 
with  it  its  schedule  of  work,  with  the  necessary  expenses, 
known  and  estimated.  The  committee  chairman  should  then 
confer  with  the  finance  committee  which  should  carefully  con- 
sider all  items  as  set  forth  above,  and  make  out  a  budget  for 
this  special  committee.  This  budget  estimate  should  be  re- 
ferred to  the  executive  committee  for  ratification,  thus  ensur- 
ing a  quicker  and  easier  result. 

The  money  for  financing  these  special  committees  should  be 
drawn  from  the  unappropriated  surplus  of  the  total  income. 
It  is  the  province  of  the  finance  committee  in  making  out  the 
budget  to  allow  enough  unappropriated  funds  besides  the  con- 
tingent fund  to  provide  for  expenditures  of  special  committees, 
to  keep  the  organization  solvent  and  to  have  a  surplus.  The 
activities  of  commercial  organizations  are  so  divergent,  and 
their  needs  so  vamable  that  it  is  impossible  to  set  down  a 
stated  percentage  or  fixed  amount  of  the  total  income  which 
should  be  left  unappropriated.  This  must  be  determined  on  the 
basis  of  past  experience  modified  by  future  demands  and  with 
an  eye  to  safety  and  conservatism  in  the  conduct  of  financial 
operations. 

Control  of  the  Expenditure  of  Budgeted  Funds 

To  restrict  the  expenditure  of  budgeted  funds  by  commit- 
tees and  bureaus  would  be  unwise  as  tending  to  hinder  the 
smooth  workings  of  these  bodies.  Some  check  must  be  set. 
however,  upon  too  liberal  expenditures  and  upon  expenditures 
without  any  great  raison  d'etre.  A  simple  yet  potent  control 
should  be  exercised,  such  as  the  following : 

The  committee  chairman  should  be  required  to  certify  all 


BUDGETS  FOR  COMMERCIAL  ORGANIZATIONS.  289 

vouchers  chargeable  against  the  appropriation  to  his  commit- 
tee, and  the  voucher  shouhi  then  be  referred  to  the  finance 
committee  for  approval.  The  latter  should  have  the  power  to 
advise  with  the  committees  with  a  view  to  the  wise  expendi- 
ture of  the  funds  appropriated.  The  general  secretary  should 
report  all  unusual  conditions  to  the  executive  committee,  which 
must  be  consulted  before  a  large  or  unusual  expenditure  may 
be  made,  even  when  within  the  appropriations.  The  finance 
committee  in  conjunction  with  the  board  of  directors  should 
have  the  power  to  revise  any  appropriations  during  the  year, 
if  necessary. 

Budget  Accounting 

There  are  several  forms  necessary  in  budget  bookkeeping 
and  accounting,  all  of  which  will  be  found  as  appendices.  The 
general  system  may  be  explained  as  follows: 

An  account  is  opened  on  the  ledger  for  each  of  the  com- 
mittees, bureaus,  or  divisions  having  an  appropriation,  to 
which  expenditures  of  the  committee  are  charged  when  the 
bill  is  incurred  rather  than  when  it  is  presented  for  payment. 
This  allows  each  committee  to  know  the  exact  status  of  its 
finances  at  all  times,  even  though  bills  may  not  have  been 
paid  at  the  time  the  entry  is  made. 

At  the  first  of  every  month  two  sets  of  sheets  are  made  out, 
one  for  the  finance  committee,  the  other  for  each  committee  or 
bureau.  A  statement  of  the  entire  appropriations  and  expendi- 
tures should  be  submitted  to  the  finance  committee  at  its  first 
meeting  of  each  month. 

Also  a  detailed  statement  of  the  appropriation,  expendi- 
tures and  balance  should  be  made  out  for  each  committee  and 
sent  to  the  committee  chairman.  This  keeps  each  committee 
aware  of  Avhat  it  may  count  upon  for  the  remainder  of  the  year, 
and  aids  in  judicious  expenditure  of  its  appropriation. 

EXHIBIT  A 
Questions  on  Methods  of  Budget-Making 

1.  Are  the  dues  of  the  organization 

(a)  Fixed? 

(b)  On  a  sliding  scale? 

2.  What  is  their  range? 

3.  How  are  the  estimates  for  the  next  year  prepared? 

(a)  Bj'  each  committee  or  bureau? 

(b)  By  each  committee  chairman? 

(c)  Any  other  way? 

10 


290  METHODS  OF  ORGANIZATION  AND  OPERATION. 

4.  In  how  much  detail  are  these  estimates? 

5.  Are  these  estimates  based  on  a  specific  schedule  of  work  for  the  coming 
year  ? 

6.  If  so,  how  is  this  schedule  prepared? 

7.  How  are  the  estimates  ratified, 

(a)  By  the  secretary? 

(b)  By  the  finance  committee? 

(c)  By  the  board  of  directors? 

8.  Who  controls  the  expenditure  of  the  budgeted  funds,  and  how? 

9.  How  is  the  work  of  special  committees  financed? 

10.  Is  there  a  contingent  fund? 

11.  If  so,  how  is  it  made  up,  and  for  what  items  does  it  allow? 

12.  Are  any  special  forms  of  accounting  used,  and  if  so,  what  are  they? 

13.  Please  enclose  any  forms  used  in  making  up  the  budget. 


Organization  Costs  and  Results 

By  GEORGE  W.  GILLETTE 

The  data  which  I  am  about  to  present  were  derived  from 
an  examination  of  62  questionaires,  in  general  very  fully  and 
intelligently  filled  out,  together  with  a  few  letters  furnishing 
at  least  a  part  of  the  information  requested.  These  data  cover 
commercial  and  civic  organizations  in  nineteen  cities  of  more 
than  100,000  population,  and  43  cities  whose  populations  vary 
from  100,000  to  5,000. 

As  to  most  of  the  matters  in  which  the  opinions  of  secre- 
taries have  been  secured,  there  is  a  divergence  of  view,  but  I 
will  be  able  to  present  in  few  instances  some  convincing  con- 
sensus of  opinion. 

Membership  and  Income  as  Related  to  Population 

While  the  amount  of  dues  of  any  organization  must  largely 
affect  the  size  of  its  membership,  a  comparison  of  city  popula- 
tion with  association  membership,  without  regard  to  dues,  is 
still  significant  of  the  interest  existing  in  any  community  in 
the  work  of  its  commercial  organization.  Out  of  reports  from 
61  cities  it  is  found  that  the  average  membership  constitutes 
1.5  per  cent  of  population.  The  largest  membership  per  cent 
of  any  population  is  8.5  per  cent,  which  exists  in  Minot,  North 
Dakota,  where  the  dues  of  the  Minot  Association  of  Commerce 
are  of  one  class,  namely  |12.00.  The  second  largest  is  in  Oil 
City,  Pennsylvania,  having  19,600  inhabitants,  where  the  Oil 
City  Chamber  of  Commerce,  with  graded  dues  of  from  $2  to 
$100,  has  a  membership  of  1,400.    The  Greater  Dayton  Associa- 


ORGANIZATION  COSTS  AND  RESULTS.  291 

tion,  in  a  city  of  132,000,  has  7,000  memberships,  whose  dues  are 
|5  each*,  the  per  cent  of  membership  being  5.2.  In  few  cities 
of  over  100,000  considered,  does  the  per  cent  of  membership 
reach  the  average  of  1.5  per  cent. 

In  considering  income  as  related  to  population,  income  only 
from  dues,  contributions,  and  the  dues  or  fees  of  departments 
or  divisions  of  work  other  than  cafes  performing  a  special 
service,  has  been  considered.  In  other  words,  income  from  in- 
vestments, cafe  service,  and  special  enterprises,  such  as  ex- 
hibits, industrial  funds,  etc.,  has  been  disregarded,  the  pur- 
pose being  to  arrive  at  the  amount  contributed  by  communi- 
ties to  the  general  permanent  work  of  the  respective  organiza- 
tions dependent  upon  them  for  support. 

On  this  basis,  from  reports  on  61  cities,  the  average  amount 
contributed  per  each  inhabitant  to  the  city's  chief  commercial 
and  civic  organization  is  found  to  be  25  cents.  The  highest  per 
capita  financial  support  reported  was  in  the  city  of  Alliance, 
Nebraska,  where,  with  a  city  population  of  5,100,  the  Alliance 
Commercial  Club  has  an  annual  general  income  of  $5,100,  or 
at  the  rate  of  $1  per  inhabitant.  The  second  largest  per  capita 
is  found  in  Minot,  North  Dakota,  where  the  Minot  Association 
of  Commerce  has  an  annual  general  income  of  |10,000,  or  98 
cents  per  inhabitant. 

A  list  of  the  other  cities,  arranged  in  order,  indicates  that 
the  largest  cities  do  not  generally  fall  in  any  one  class,  but 
that  the  results  are  mixed;  some  large  cities  and  some  small 
ones  being  near  the  top,  and  other  large  and  small  cities  being 
near  the  bottom. 

The  Tucson,  Arizona,  Chamber  of  Commerce  reports  an 
unusual  plan  of  finance.  Under  a  state  statute,  enacted 
through  this  chamber's  influence,  a  general  tax  levy  of  one- 
twentieth  of  one  per  cent  is  made,  producing  a  fund  which  is 
spent  for  advertising  and  publicity  in  aid  of  the  city.  Under 
a  provision  of  the  state  constitution,  similar  to  that  of  most 
states,  taxing  districts  are  not  allowed  to  turn  over  funds  or 
loan  credit  to  organizations.  Therefore,  in  Tucson,  the  city 
manager,  one  councilman  and  three  of  the  chamber's  directors, 
constitute  a  commission  which  handles  the  fund  upon  the  rec- 
ommendation of  the  chamber. 

It  has  proved  impossible  to  secure  complete  enough  finan- 
cial statements  to  classify  the  per  cents  of  total  general  outlay 


292  METHODS  OF  ORGANIZATION  AND  OPERATION. 

devoted  to  various  items  of  administration  expense.  Perhaps 
the  most  important  element  of  overhead  cost,  however,  was 
obtainable.  Fifty  cities  reported  the  per  cent  of  total  general 
expenditure  devoted  to  salaries  and  w^ages.  The  average  per 
cent  thus  derived  is  41,  the  highest  in  any  case  being  80,  and 
the  lowest  nineteen.  The  high  figure  occurs  in  a  city  having 
a  population  of  slightly  more  than  50,000,  and  the  lowest  in  a 
city  of  20,000. 

Value  of  Cafe  Service 

Tw^elve  of  the  organizations  interrogated  report  the  main- 
tenance of  cafes.  These  are :  The  Indianapolis  Chamber  of  Com- 
merce, Indianapolis  Board  of  Trade;  Washington,  Pennsyl- 
vania, Board  of  Trade;  Elyria,  Ohio,  Chamber  of  Commerce; 
Grand  Rapids  Association  of  Commerce;  Minot  Association  of 
Commerce;  Duluth  Commercial  Club;  Rochester,  New  York, 
Chamber  of  Commerce;  Sioux  City  Commercial  Club;  Bing- 
hamton,  Ncav  York,  Chamber  of  Commerce ;  Cedar  Rapids  Com- 
mercial Club. 

In  most  of  these  cities  cafes  are  conducted  with  a  slight 
profit,  or  at  least  no  loss.  The  daily  attendance  of  members  at 
luncheon  reported,  is  from  a  maximum  of  200  to  a  minimum 
of  fifteen  in  a  small  city,  the  average  being  about  125.  The 
per  cent  of  members  attending,  at  least  as  often  as  weekly,  aver- 
aging about  25. 

All  of  the  organizations  maintaining  cafes  report  this 
feature  to  be  of  great  value.  These  expressions  are  used :  "high- 
est asset,''  "great  value,"  "very  beneficial,''  "invaluable,"  "in- 
estimable value,"  "no  club  complete  A^dthout,"  "indispensable," 
etc. 

In  almost  every  organization  w  hich  maintains  this  feature, 
few  committee  meetings  are  reported  held  elsewhere  than  in 
the  cafe  at  the  luncheon  hour. 

The  secretaries  of  most  of  these  organizations  report  that 
a  substantial  annual  appropriation  for  the  maintenance  of  cafe 
service  over  and  above  income,  if  necessary,  would  be  warrant- 
ed, the  Rochester,  New  York,  Chamber  of  Commerce  stating 
that  |5,000  a  year  would  thus  be  w^ell  invested.  Sioux  City, 
$1,000  to  §1,500 ;  Binghamton,  |1,000.  Only  one  secretary  can 
be  quoted  as  stating  that  the  sendee  would  not  be  warranted 
unless  self-supporting. 

My  questionaire  called  for  an  expression  of  opinion  of  the 


ORGANIZATION  COSTS  AND  RESULTS.  293 

abstract  value  of  cafe  service  to  a  commercial  organization.  A 
number  of  associations  who  now  conduct  no  restaurant  believe 
the  adjunct  of  value,  only  three  expressing  a  contrary  opinion. 

Expense  of  Membership  Work  and  Loss  From  Unpaid  Dues 

I  endeavored  to  secure  the  per  cent  of  total  general  ex- 
pense devoted  by  chambers,  boards  and  clubs  to  solicitation  of 
new  members ;  collection  of  dues  and  the  entertainment  of  mem- 
bers. Twenty-five  secretaries  furnished  figures  covering  the 
item  first  mentioned.  From  this  information  it  appears  that 
an  average  of  2.28  per  cent  of  general  outlay  was  expended  by 
the  organizations  reporting,  on  the  solicitation  of  new  membei's. 
excluding  the  cost  of  elaborate  campaigns.  The  highest  per 
cent  reported  was  eleven,  and  the  lowest  none. 

In  a  similar  way,  out  of  34  organizations  reporting,  the 
average  expense  in  the  collection  of  dues  is  2.7,  the  highest 
being  fifteen  per  cent,  and  the  lowest  none. 

Of  34  organizations  reporting,  the  average  per  cent  of  total 
outlay  devoted  to  the  entertainment  of  members  is  2.97,  the 
highest  being  9.75  per  cent,  and  the  lowest  none. 

Forty-one  replies  were  received  in  answer  to  the  question, 
"What  was  the  per  cent  of  loss  of  total  income  from  dues  uncol- 
lected by  you  in  the  latest  fiscal  year?"  The  average  of  these 
replies  is  8.2  per  cent,  the  largest  being  twenty  per  cent,  and 
the  lowest  less  than  one-third  of  one  per  cent.  This  last  quite 
remarkable  shoTsdng  was  made  by  the  Rochester,  New  York, 
Chamber  of  Commerce. 

In  reply  to  the  query,  "What  per  cent  of  loss  would  you 
consider  fair  to  charge  off  in  a  normal  year?"  the  average  was 
eight  per  cent,  the  highest  figure  given  in  any  one  answer  being 
25  per  cent,  and  the  lowest  one-half  of  one  per  cent. 

Budget 

In  order  to  determine  how  generally  prevalent  is  the  budget 
plan  of  estimating  expenses  in  advance,  and  making  appropria- 
tions for  the  conduct  of  organizations  on  the  basis  of  such  esti- 
mate, data  were  secured  from  52  secretaries.  Of  the  organiza- 
tions represented  by  them,  28  use  the  budget  plan.  Twenty-six 
report  budgets  prepared  annually,  one  semi-annually,  and  one 
quarterly. 

Twenty-four  report  not  using  the  budget.  Believing  it  will 
be  of  interest,  as  showing  a  division  of  opinion  with  a  weight 


294  METHODS  OF  ORGANIZATION  AND  OPERATION. 

of  very  respectable  authority  on  either  side,  the  names  of  the 
associations  which,  in  the  conduct  of  their  finances,  do  and  do 
not  prepare  budgets,  are  given.  Those  who  do  are:  Fargo 
Commercial  Club ;  Kalamazoo  Chamber  of  Commerce ;  Madison 
Board  of  Commerce;  St.  Paul  Association  of  Commerce;  Utica 
Chamber  of  Commerce;  Cincinnati  Chamber  of  Commerce; 
Chicago  Association  of  Commerce;  Owensboro,  Kentucky, 
Chamber  of  Commerce;  Chattanooga  Chamber  of  Commerce; 
Columbia,  South  Carolina,  Chamber  of  Commerce;  Commercial 
Club  of  Duluth ;  Charleston,  South  Carolina,  Chamber  of  Com- 
merce; Rochester,  N.  Y.,  Chamber  of  Commerce;  Greater  Day- 
ton Association;  Lawrence,  Mass.,  Chamber  of  Commerce; 
Alton,  111.,  Board  of  Trade;  Washington,  Pa.,  Board  of  Trade; 
Alliance,  Neb.,  Commercial  Club;  Kewanee,  111.,  Civic  Club; 
Commercial  Club  of  Kansas  City;  Bluefield,  West  Va.,  Cham- 
ber of  Commerce;  Springfield,  Mass.,  Board  of  Trade;  Erie, 
Pa.,  Board  of  Commerce,  and  the  Columbus  Chamber  of  Com- 
merce. 

Those  who  do  not:  Merchants'  Association  of  New  York; 
Philadelphia  Chamber  of  Commerce ;  Wilkes-Barre  Chamber  of 
Commerce;  Peoria  Association  of  Commerce;  Terre  Haute 
Chamber  of  Commerce;  Indianapolis  Chamber  of  Commerce; 
Minot,  North  Dakota,  Association  of  Commerce;  Fairmont, 
West  Va.,  Chamber  of  Commerce;  LaFayette  Chamber  of  Com- 
merce; Greensboro,  North  Carolina,  Chamber  of  Commerce; 
Rochester,  Minn.,  Commercial  Club;  Glean,  New  York,  Cham- 
ber of  Commerce;  York,  Pa.,  Chamber  of  Commerce;  Joliet, 
111.,  Association  of  Commerce;  Kankakee,  111.,  Commercial  As- 
sociation; Haverhill,  Mass.,  Board  of  Trade;  Clarksburg,  West 
Va.,  Board  of  Trade;  Akron  Chamber  of  Commerce;  Elyria, 
Ohio,  Chamber  of  Commerce;  Sterling  and  Rock  Falls,  111., 
Commercial  Club;  Bingham  ton  Chamber  of  Commerce;  Rock- 
ford,  111.,  Chamber  of  Commerce;  New  Brunswick,  N.  J.,  Board 
of  Trade,  and  Cedar  Rapids,  Iowa,  Commercial  Club. 

Somewhat  diffidently,  I  venture  to  offer  an  expression  of 
personal  opinion  in  this  matter.  Where  the  budget  plan  is 
used,  I  advocate  the  desirability  of  preparing,  as  does  the 
Columbus  Chamber  of  Commerce,  budgets  as  often  as  quarter- 
ly. This  custom  makes  it  possible  to  foresee  and  take  into  ac- 
count many  expenditures  which  could  not  be  considered  on  a 
yearly  budget  plan,  and  permits  a  very  close  scrutiny  of  ex- 


ORGANIZATION  COSTS  AND  RESULTS.  295 

penditures  Avhich  I  have  found,  from  my  own  experience,  re- 
sults in  substantial  and  proper  saving.  In  addition,  the  fre- 
quent recurrence  of  the  process  of  budget  making  keeps  finances 
constantly  in  mind,  and  renders  the  process  of  making  esti- 
mates much  less  onerous  than  it  would  otherwise  be.  I  am  also 
confident  that  it  makes  a  comparison  of  estimated  and  actual 
expenses  from  month  to  month  much  more  accurate  and  sig- 
nificant. 

Expediency  of  a  Surplus 

Two  years  ago  I  visited  some  of  the  leading  organizations 
of  the  country.  In  one  city  I  learned  that  its  commercial  and 
civic  organization  was  accumulating,  out  of  an  income  sub- 
stantially in  excess  of  its  needs,  a  handsome  surplus.  This 
made  a  deep  impression  upon  me.  Shortly  afterward  I  spoke 
of  it  to  one  of  the  officers  of  this  association,  a  man  whose 
opinion  is  widely  respected. 

His  comment  was  that  the  accumulation  of  a  surplus  tend- 
ed to  make  an  organization  independent,  and  in  danger  of  fail- 
ing to  respond  to  the  desires  of  its  members.  He  indicated 
that  the  healthiest  condition  for  any  association  was  that  in 
which  no  income  should  be  received  in  excess  of  needed  ex- 
penditures, or,  in  other  words,  it  was  best  to  feel  the  need  of 
making  good  according  to  the  wishes  of  the  members  from 
year  to  year,  and  thereby  to  secure  from  them,  currently,  the 
needed  funds. 

Having  this  situation  in  view,  I  included  in  my  inquiry 
blank  these  questions — "Have  you  accumulated  a  surplus?'' 
"Do  you  feel  that  there  is  a  danger  of  any  organization  tend- 
ing to  become  too  independent  in  case  it  has  a  substantial  in- 
come from  investments?" 

In  reply  to  these  questions,  sixteen  secretaries  reported  the 
accumulation  of  more  or  less  substantia]  surpluses.  Thirty- 
eight  replies  were  received  to  the  request  for  opinion.  Of  these, 
30  stated  that  in  their  judgment  there  was  little  or  no  danger 
of  independence  or  unresponsiveness  due  to  the  accumulation 
of  a  surplus,  provided  an  organization's  affairs  were  wisely 
managed.  Seven  stated  that  they  deemed  it  unwise  to  have 
an  endowment,  and  in  one  answer  the  possibility  was  recog- 
nized without  an  expression  of  opinion. 

Among  the  replies,  the  following  are  interesting:  Mr. 
Howard  Strong,  of  the  Minneapolis  Civic  and  Commerce  Asso- 


296  METHODS  OF  ORGANIZATION  AND  OPERATION. 

elation,  says,  "There  is  probably  little  danger  of  an  organiza- 
tion without  an  endowment  becoming  financially  independent." 

Mr.  Denis  F.  Howe,  of  the  Utica  Chamber  of  Commerce, 
says,  "It  is  as  bad  for  an  organization  as  for  a  government  to 
have  a  surplus.  You  are  better  otf  if  set  a  hot  pace  in  financial 
matters." 

Mr.  Bruce  Kennedy,  of  the  IVfontgomery,  Alabama,  Cham- 
ber of  Commerce,  says  that  the  danger  of  independence  from 
an  endowment  is  very  real,  and  that  his  organization  aims 
never  to  have  one. 

Mam^  of  the  gentlemen  reporting  no  surplus  express  a 
conviction  of  the  desirability  of  building  up  one,  and  express 
the  intention  of  doing  so  in  the  future. 

The  weight  of  the  testimony  is  decidedly  against  the  exist- 
ence of  a  danger  in  saving  and  laying  aside  a  balance. 

The  Ways  and  Means  Plan 

In  order  to  test  the  value  of  the  so-called  "ways  and 
means"  form  of  organization,  I  sought  to  ascertain  how  many 
bodies  maintained  ways  and  means  committees  or  membership 
councils,  as  they  are  now  more  generally  called ;  an  opinion  as 
to  the  value  of  the  plan,  what  per  cent  of  divisions  were  active 
where  the  plan  was  used;  whether,  in  the  judgment  of  the  men 
interrogated,  the  plan  was  valuable  for  a  large  organization, 
for  a  small  one,  and  whether  it  was  recommended  for  any  new 
organization.  Out  of  55  replies  received,  the  use  of  the  plan 
in  seventeen  organizations  was  reported,  and  in  38  its  non-use. 

The  use  of  the  term  "ways  and  means  committee"  was,  in 
many  instances,  objected  to  as  a  misnomer,  as  to  me  it  seems 
to  be.  In  many  instances  the  name  "membership  council"  is 
used.  In  one  instance,  "public  affairs  committee,"  and  another, 
"committee  of  a  hundred." 

Secretaries  of  seventeen  organizations  employing  the  plan, 
in  all  except  two  cases,  testify  that  it  is  valuable.  Mr.  Miller, 
of  Chicago,  says :  "We  do  not  believe  that  the  plan  could  fail 
of  success  if  carefully  worked  out  in  a  large  or  small  organiza- 
tion." 

Mr.  Weller,  of  Erie  Board  of  Commerce :  "Decisions  based 
on  the  action  of  our  membership  council  have  been  well  sus- 
tained by  public  opinion." 

Mr.  Foss,  of  Springfield    (Mass.)    Board  of  Trade:     "A 


ORGANIZATION  COSTS  AND  RESULTS.  297 

comparison  of  the  period  since  we  had  such  a  committee  with 
that  before  the  committee  was  formed  proves  its  worth  invalu- 
able.' 

Mr.  Hackett,  of  Rochester  (Minn.)  Commercial  Club,  says. 
"Most  important.'' 

Mr.  Ketchum,  of  Washington  (Pa.)  Board  of  Trade,  says: 
"Of  inestimable  value — is  our  initiative  and  referendum  body, 
open  to  the  public  for  kicks  and  suggestions,  and  a  good  'buff- 
er' for  the  secretary  and  the  organization." 

The  other  organizations  in  which  the  plan  is  used  and 
commended  are:  Merchants'  Association  of  New  York;  Madi- 
son Board  of  Commerce;  Peoria  Association  of  Commerce; 
Montgomery  Chamber  of  Commerce;  Kansas  City  Commercial 
Club;  Grand  Rapids  Association  of  Commerce;  Commercial 
Club  of  Duluth ;  Alton,  Illinois,  Board  of  Trade. 

Twenty-seven  of  those  not  using  the  plan  express  no  opin- 
ion of  its  value.  Five  of  them  condemn  the  plan,  some  of  their 
comments  being  as  follows:  "The  board  of  directors  should 
prevail ;"  "The  plan  might  cause  friction ;"  "The  value  is  ques- 
tionable:" "Erects  barrier  betw^een  the  directors  and  the  mem- 
bership ;"  "Very  poor,  as  usually  carried  on ;  wastes  much  valu- 
able time,  is  not  required."  Two  organizations  w-ho  do  not 
use  the  plan  have  tried  it,  found  it  wanting,  and  given  it  up. 
Five  who  do  not  have  the  plan  believe  in  it,  and  expect  to  form 
membership  councils. 

Of  the  seventeen  organizations  reporting  as  using  this 
plan,  ten  reported  on  the  per  cent  of  divisions  active.  Four 
say  all  are  active,  one  says  nearly  all,  and  another  "all  in  a 
way;"  one  says  98  per  cent,  another  80  per  cent,  another  76 
per  cent,  and  another  50  per  cent. 

Ten  of  the  secretaries  believe  it  valuable  for  both  large  and 
small  organizations.  Seven  are  of  the  opinion  that  it  is  of  sub- 
stantially less  value  for  a  small  than  for  a  large  organization, 
the  reason,  of  course,  being  that  with  few  members  it  is  less 
difficult  to  preserve  contact.  Seven  of  the  secretaries  who  do 
not  use  the  plan  say  it  is  valuable  for  large,  but  not  so  valuable 
for  small  associations.  Out  of  all  those  replying,  seventeen 
would  recommend  the  plan  for  new  organizations  in  general, 
and  eight  would  not. 

Mr.  Ernest  H.  Rowe,  of  the  Jersey  City  Chamber  of  Com- 
merce, says  he  believes  the  plan  a  transitional  expedient,  and 


298  xMETHODS  OF  ORGANIZATION  AND  OPERATION. 

that  we  have  not  yet  found  the  best  permanent  plan  to  interest 
members. 

Mr.  Lewis,  of  the  Indianapolis  Chamber  of  Commerce: 
"Of  some  value.  The  Indianapolis  Commercial  Club  tried  out 
the  plan  with  considerable  success,  but  interest  languished.'' 

Mr.  Strong,  of  Minneapolis:  "A  sort  of  fifth  wheel;  use- 
ful, perhaps,  when  it  is  difficult  to  keep  in  close  contact  with 
the  entire  membership." 

Mr.  Shafer,  of  the  Bluefield  (West  Virginia)  Chamber  of 
Commerce,  suggests  that  organizations  in  small  cities  "have 
Avays  and  means  committee  as  executive  committee,  the  latter 
formed  from  heads  of  five  to  seven  departments." 

In  so  far  as  the  experience  and  opinions  of  the  55  organi- 
zations covered  by  this  questionaire  are  concerned,  the  de- 
sirability of  the  ways  and  means  plan  for  large  organizations 
is  unquestionably  upheld.  As  to  small  organizations  the  ques- 
tion is  not  settled. 

Importance  of  the  Civic  and  Social  as  Contrasted  with  the 
Commercial  and  Industrial 

In  my  preparation  I  sought  to  secure  as  precise  and  sig- 
nificant data  as  possible,  dealing  with  the  tendency  which  T 
believe  exists  to  place  a  growing  emphasis  on  the  civic  and 
social  interests  of  communities  as  contrasted  with  the  commer- 
cial and  industrial.  Forty-one  correspondents  definitely  an- 
swered the  question,  "Does  your  organization  spend  more 
money  in  civic  and  social  or  in  commercial  and  industrial?" 
In  21  cases  commercial  and  industrial  enterprises  have  been 
favored  in  financial  outlay.  In  nine,  civic;  in  two,  civic  and 
social,  and  in  nine,  the  material  and  spiritual  were  equally  sup- 
ported. 

In  reply  to  the  question,  "In  which  of  these  fields  has  your 
organization  accomplished  most  for  your  community?"  fourteen 
replied  commercial  and  industrial,  thirteen  civic  and  social, 
and  thirteen  both  about  equally. 

Seventeen  secretaries  reported  a  larger  interest  on  the  part 
of  members  in  commercial  and  industrial;  seven  in  civic  and 
social,  and  seventeen  in  both  about  equally. 

This  question  was  asked :  "In  an  ideal  organization,  which 
do  you  consider  more  important,  the  civic  and  social  or  the 
commercial  and  industrial,  and  why?"  Eighteen  replies  advo- 
cated a  balance  in  which  both  should  be  about  equally  support- 


ORGANIZATION  COSTS  AND  RESULTS.  299 

ed.  Fifteen  definitely  say  that  the  greater  emphasis  should  be 
put  upon  the  civic  and  social.  Four  only,  bespeak  a  first  place 
for  the  commercial  and  industrial.  Five  insist  that  the  social 
should  have  no  consideration,  but  should  be  left  to  independent 
bodies  with  purely  social  aims. 

It  must  not  be  forgott/Cn  that  among  the  organizations  in- 
terrogated there  is  a  difference  in  history,  structure,  and  con- 
dition with  reference  to  other  associations  existing  in  their  re- 
spective communities.  It  follows  that  the  comparison  of  views, 
while  interesting,  is  conclusive  only  in  one  respect,  namely: 
there  is  a  growing  opinion  that  in  an  ideal  organization,  the 
civic  and  social  should  be  at  least  as  important  as  the  commer- 
cial and  industrial,  and  the  tendency  is  to  make  it  of  even 
more  importance. 

Advertising  Media 

For  anyone  who  has  definite  and  convincing  ideas  of  the 
value,  both  absolute  and  relative,  of  various  advertising  media 
for  any  purpose,  I  have  always  had  a  very  high  respect.  I  have 
always  had  a  great  interest  in  advertising  as  an  abstract  sub- 
ject. I  have  never  yet  had  called  to  my  attention  a  single 
instance  in  which  more  than  a  few  persons,  out  of  many  con- 
cerned, could  reach  an  agreement  on  a  question  of  this  kind, 
where  the  answer  did  not  lie  upon  the  surface. 

Believing  also  that  this  question  was  one  of  practical  in- 
terest in  general  to  commercial  secretaries,  I  raised  certain 
questions  about  the  value  of  advertising  media,  the  answers 
to  which,  I  hoped,  might  result  in  drawing  and  recording,  for 
your  benefit,  at  least  a  few  definite  conclusions.  In  this  hope 
I  have  been  disappointed.  There  may,  however,  be  something 
of  enlightenment  in  the  following  data : 

Of  something  over  40  organizations  who  were  good  enough 
to  reply  to  my  query  on  this  subject,  27  stated  that  they  did  no 
advertising  at  all.  These  27  include  pretty  generally  the  larger 
cities  of  the  list.  The  others,  that  is  to  say,  some  fifteen  or 
twenty,  and  very  generally  organizations  in  smaller  cities,  re- 
ported having  spent  small  amounts,  in  no  case,  except  one, 
exceeding  $500,  on  advertising  of  various  kinds. 

Twenty-seven  report  that  their  newspapers  donate  no  dis- 
play advertising  space.  In  fifteen  cities  newspapers  do  give 
such  space.  These  cities  are  Fairmont,  West  Virginia;  Fargo, 
N.  D. ;  Madison,  Wis. ;  Cincinnati  and  Youngstown,  Ohio ;  Joli- 


300  METHODS  OF  ORGANIZATION  AND  OPERATION. 

et,  111.;  Ilhinelander,  Wis.;  AVashington,  Pa.;  Kankakee,  111.; 
Haverhill,  Mass.;  Alliance,  Neb.;  Indianapolis,  Ind. ;  Owens- 
boro,  Ky.;  Jacksonville  and  Rockford,  111. 

Thirty-three  secretaries  were  kind  enough  to  express  their 
opinions  as  to  the  best  advertising  medium  for  industrial  de- 
velopment purposes.  Nine  favored  trade  journals;  seven,  met- 
ropolitan newspapers;  eight,  news  stories,  which,  of  course, 
are  not  advertising  at  all,  but  none  the  less  interesting  as  sug- 
gestions ;  eight,  direct  communications  or  negotiation,  and  one, 
traveling  salesmen. 

This  question  was  submitted :  "Briefly,  what  is  your  opin- 
ion of  the  value  of  newspaper  advertising  for  commercial  or- 
ganization purposes?"  While  the  question  is  so  general  that 
no  gTeat  value  attaches  to  the  answers,  it  may  be  interesting  to 
know  that  out  of  34  replies,  eighteen  definitely  recommended 
the  medium  with  such  expressions  as  "best  available,"  "good." 
"great  value,"  "best,"  "invaluable,"  "good  for  campaigns,"  etc. 
Sixteen  denied  this  value,  using  such  expressions  as  "n.  g.," 
"derned  little,"  "slight,"  "negligible,"  etc. 

In  an  attempted  comparison  of  the  value  of  bill  boards, 
trade  papers,  display  space  in  general  magazines,  signs,  and 
street  car  placards,  the  following  results  were  obtained:  Bill 
boards,  eleven  say  good,  eight  say  no  or  little  good,  three  fair, 
eight  do  not  know,  one  "varies  according  to  organization." 

Trade  papers :    One  best,  fifteen  good,  six  fair,  two  no  good. 

General  magazine :  One  best,  five  good,  four  fair,  eleven  no 
good. 

Signs:    Seventeen  good,  seven  no  good,  one  small. 

Street  car  placards :  Nine  good,  eight  fair,  seven  no  good 
or  very  questionable. 

I  sought  to  secure  information  concerning  trade  or  other 
boards  or  associations  organized  as  part  of  commercial  bodies, 
and  having  authority  in  matters  affecting  their  own  trade  in- 
terests. From  the  data  secured  it  appears  that  out  of  52  re- 
plies, 25  organizations  report  having  no  such  subsidiary  organi- 
zations. The  others,  27  in  number,  carry  on  various  trade  and 
other  activities  in  this  way.  Seventeen  secretaries  report  retail 
merchants'  boards.  Other  activities  commonly  mentioned  are: 
Traffic,  wholesalers  and  jobbers;  farm  bureaus;  retail  grocers; 
manufacturers;  builders  and  contractors;  bureaus  of  munici- 
pal research;  ad  clubs,  etc. 


CHAPTER  XVII. 
Meetings 

When  to  Hold  and  How  to  Conduct  Meetings 
By  H.  V.  EVA 

The  question  of  meetings — when  to  hold  them,  how  to  con- 
duct them,  how  best  to  dispose  of  the  business — is  one  that 
confronts  every  commercial  organization. 

The  organization  without  good  meetings — that  is  meet- 
ings attended  by  a  representative  percentage  of  the  member- 
ship of  the  organization  or  committee — is  unable  to  do  ef- 
fective work.  Secretaries  who  have  grappled  with  the  task  of 
increasing  attendance  at  meetings  know  the  difficulties  evolved. 
I  am  going  to  give  you  my  own  experience — that  is  the  experi- 
ence of  the  Commercial  Club  of  Duluth. 

Like  most  commercial  organizations  ours  started  on  the 
basis  of  pure  democracy.  The  constitution  and  by-laws  pro- 
vide for  a  monthly  meeting  of  the  club  and  also  an  annual 
meeting.  Also  in  providing  for  meetings  on  call  of  the  president 
in  this  method  we  encountered  the  difficulties  other  organiza- 
tions have  met.  The  attendance  was  not  satisfactory.  Too 
much  business  came  up  and  subjects  were  turned  into  unsys- 
tematic discussion.  Meetings  ran  too  late  and  attendance  di- 
minished in  consequence.  Committees  were  appointed  as  sub- 
jects came  up  requiring  committee  attention.  The  personnel 
of  the  committees  dealing  w^ith  related  subjects  varied,  and  lack 
of  stability  was  the  result.  Meetings  began  to  lose  effectiveness. 
We  couldn't  seem  "to  do  business"  as  it  should  be  done.  We 
saw  that  a  change  had  to  be  made. 

The  change  was  made  and  it  brought  representative  gov- 
ernment. In  the  large  commercial  organizations,  as  in  the 
nation,  pure  democracy  has  proved  unwieldy.  Manifestly  the 
people — ^the  voters  of  Duluth  or  of  Omaha — could  not  be  gath- 
ered together  evei*y  week  to  discuss  legislative  matters  and  to 
adopt  resolutions  and  ordinances.  Confusion  would  result. 
In  a  lesser  degree  the  same  confusion  arises  in  a  commercial 
organization  of  500  or  1,500  or  2,500  members.    The  confusion 

301 


302  METHODS  OF  ORGANIZATION  AND  OPERATION. 

destroys  efficiency.  The  commercial  organization  is  a  public 
institution.  It  deals  with  questions  of  public  interest.  Usual- 
ly they  are  of  such  a  nature  that  all  men  are  not  familiar  with 
them — with  their  causes  and  effects.  Almost  every  question 
that  arises  requires  investigation  and  study.  Investigation  and 
study  through  the  club  meeting  are  not  possible.  A  smaller 
body,  less  uuAvieldy  and  less  impulsive  is  necessary  though  it 
should  be  representative  of  and  impowered  to  speak  for  the 
whole  club.  To  solve  the  problem  of  efficiency  at  meetings, 
we  found  that  three  elements  were  needed — system  in  organi- 
zation, fidelity  to  duties,  and  stability  in  committees.  We  have 
all  three. 

The  Public  Affairs  Committee 

The  public  business  of  the  Commercial  Club  of  Duluth  is 
now  conducted  through  a  public  affairs  committee.  The  first 
committee  appointed  about  nine  years  ago,  consisted  of  40 
members.  It  was  increased  year  by  year  until  now  it  numbers 
150.  The  chairman  of  the  public  affairs  committee  is  named 
by  the  president  of  the  club,  who  is  elected  by  the  members. 
The  president  also  names  the  members  of  the  committee,  with- 
out making  any  designation  as  to  sub-committee  duties.  After 
the  list  is  furnished,  the  chairman  assigns  the  members  to  sub- 
committees with  reference  to  their  fitness  for  dealing  with  the 
particular  subjects  to  which  they  are  assigned.  For  instance, 
our  committee  on  agriculture  is  made  up  of  men  who  have 
spent  their  lives  in  furthering  the  agricultural  development  of 
the  country  around  Duluth.  Our  committee  on  retail  coopera- 
tion consists  of  men  prominent  in  the  retail  trade.  Our  educa- 
tional committee  takes  in  the  President  of  the  State  Normal 
School  and  the  superintendent  of  the  city  schools  in  addition 
to  other  men  interested  in  educational  matters.  So  it  goes 
through  the  list.  The  harbors  and  waterways  committee  is 
composed  of  men  familiar  with  the  harbor  and  with  harbor 
matters.  Every  sub-committee  is  appointed  with  reference  to 
the  qualifications  of  the  men  for  dealing  intelligently  with 
subjects  that  may  be  assigned  to  them. 

The  public  affairs  committee  as  a  whole  meets  once  each 
month  on  the  call  of  the  chairman.  We  tr}^  to  have  these  meet- 
ings regularly  so  that  the  members  may  get  into  the  habit  of 
attending.  Furthermore,  Ave  have  them  at  6 :15  in  the  evening 
and  they  open  Avith  dinner.    Men  are  able  to  go  to  the  meeting 


MEETINGS.  303 

right  from  their  business,  without  going  home  first  and  hav- 
ing the  excuse  of  being  disinclined  to  leave  home  after  once 
getting  there. 

The  business  of  the  club  is  done  through  sub-committees. 
The  meeting  of  the  whole  public  affairs  committee  is  held  only 
that  all  may  keep  in  touch  with  what  each  sub-committee  is  do- 
ing. The  sub-committees  report  in  order.  Questions  on  which 
there  is  need  for  an  expression  of  the  whole  committee  are  pre- 
sented in  the  form  of  recommendations.  There  is  no  "gag 
rule."  Any  man  may  talk  on  any  subject.  The  meetings  are 
open  to  all  members  of  the  club  and  even  to  the  citizens  gen- 
erally should  they  care  to  attend.  Our  experience  has  been 
that  the  whole  committee,  representative  of  the  club,  is  usually 
satisfied  with  the  recommendation  of  a  sub-committee.  They 
know"  the  members  of  the  sub-committees;  know  that  no  report 
is  made  except  on  a  firm  basis  of  knowledge,  and  are  satisfied 
to  uphold  the  position  of  the  sub-committee.  I  say  usually,  for, 
of  course,  there  are  occasions  when  the  sub-committee  clashes 
with  the  views  of  other  members  of  the  whole  committee,  but 
the  clashes  are  much  fewer  than  they  would  be  were  subjects 
brought  before  the  club  in  half-baked  form  without  investiga- 
tion or  study. 

Sub- Committee  Meetings 

The  sub-committees  meet  on  the  call  of  their  chairman. 
The  frequency  of  the  meetings  depends  largely  upon  the  nature 
of  the  committee,  the  season  of  the  year  and  the  subjects  up  for 
its  consideration.  I  have  known  committees  to  meet  daily  for 
a  week  when  pressing  subjects  were  before  them.  Also  I  have 
known  committees  to  go  some  months  without  a  meeting,  but 
they  are  very  few.  We  try  to  have  the  sub-committees  hold 
one  or  two  meetings  a  month,  anyway,  for  the  sub-committees 
initiate  work  as  well  as  accept  other  work  by  reference  from 
the  public  affairs  committee. 

We  find  it  best  to  hold  the  sub-committee  meetings  at  the 
noon  hour,  the  meetings  taking  the  form  of  a  luncheon.  In 
that  w^ay  the  members  of  the  committee  do  not  lose  any  time 
from  their  business  as  usually  they  lunch  at  the  club  daily 
and  the  luncheon  meeting  takes  but  very  little  more  time  than 
luncheon  alone. 

At  the  monthly  meeting  of  the  public  affairs  committee  we 
try  to  have  the  work  done  so  that  the  meeting  will  be  over  in 


304  METHODS  OF  ORGANIZATION  AND  OPERATION. 

time  for  the  members  to  go  home  at  a  reasonable  hour,  and 
very  often  the  meeting  is  over  in  time  to  attend  the  theaters. 

At  each  meeting  of  a  sub-committee  either  the  secretary, 
assistant  secretary  or  some  other  member  of  the  club  staff  is 
present  and  minutes  are  faithfully  kept.  In  that  way  there  is 
no  unsystematic  losing  of  subjects  or  doubt  about  previous 
action.  There  is  a  docket  kept  for  the  whole  public  affairs 
committee.  Ever^^  subject  goes  on  the  docket,  its  reference  is 
noted,  its  progress  followed  and  we  know  just  what  is  being 
done  in  every  line  of  work  in  which  the  club  is  interested.  The 
sub-committee  that  fails  to  attend  to  a  subject  referred  to  is 
promptly  called  to  account  if  no  report  is  made  at  the  monthly 
meeting. 

There  you  have  the  systematic  organization.  There  may  be 
imperfections  in  the  organization,  but  they  are  not  such  as  to 
make  us  dissatisfied  with  the  whole.  I  believe  we  have  as  effi- 
cient, as  simple  and  as  thorough  an  organization  as  one  could 
wish  for  in  a  city  of  the  size  of  ours.  It  is  a  business-like  or- 
ganization, evolved  in  line  with  the  needs  and  conveniences  of 
the  busy  business  men  who  make  up  the  organization. 

The  Question  of  Attendance 

The  question  of  obtaining  attendance  at  meetings  has  been 
solved,  although  it  was  a  long,  hard  pull.  In  the  first  place  we 
have  hammered  away  on  the  idea  that  every  man  owes  a  little 
of  his  time  and  ability  to  public  service,  and  service  is  obtained 
mainly  on  that  basis.  We  have  made  every  effort  to  meet  the 
convenience  of  the  members.  We  have  furthermore  created  a 
note  of  personal  interest  by  naming  on  committees  men  who 
have  some  special  interest  in  the  subjects  likely  to  be  assigned. 
We  arouse  his  interest  through  his  business  or  through  his 
hobby  and  when  a  man  is  really  interested  in  the  public  work 
he  is  called  upon  to  do,  the  chances  are  that  he  will  attend  to  it. 

Then  we  have  the  example.  The  biggest  business  men  in 
Duluth  are  on  our  committees  and  are  the  most  faithful  and  ac- 
tive workers.  In  fact  it  is  usually  true  that  the  man  of  larger 
affairs  bas  more  public  spirit  than  the  man  of  small  affairs. 
However,  that  may  be  the  example  of  a  group  of  men  who  have 
faithfully  served  the  public  through  the  commercial  club  for 
many  years  and  it  has  been  a  great  aid  to  us  in  obtaining  serv- 
ice and  attention  to  the  work  of  our  club. 


MEETINGS.  a05 

Speaking  from  my  own  personal  experience,  I  think  a  mis- 
take is  made  in  attemj)ting  to  conduct  the  entire  business  of 
a  big  commercial  organization  through  the  general  club  meet- 
ing. It  is  easier  to  get  a  representative  attendance  of  a  commit- 
tee of  150  members  than  it  is  to  obtain  a  good  representation 
of  our  members  of  1,200  at  regular  meetings.  And  when  action 
is  taken  by  any  gathering  that  is  not  representative  of  the  or- 
ganization, such  action  loses  much  of  its  effect  through  that 
fact. 

Where  the  Real  Work  Should  Be  Done 

I  would  advise  that  meetings  be  not  burdened  up  with 
business.  As  many  matters  should  be  disposed  of  by  sub-com- 
mittees as  possible.  When  meetings  run  too  late,  interest  lags, 
care  is  not  exercised  and  injudicious  action  is  often  taken.  The 
interests  of  our  club,  and  I  think  it  is  true  of  most  clubs  in 
cities  of  the  size  of  Duluth,  are  too  numerous  and  too  complex 
for  every  member  of  the  club  to  be  in  touch  with  the  intimate 
details  of  each.  There  is  Avhere  the  sub-committee  acts  as  a 
great  aid.  We  have  sub-committees  on  agriculture,  building 
trades,  city  history,  city  planning,  educational  cooperation, 
finance,  good  roads,  harbors  and  waterways,  homecrofting,  in- 
dustrial, legal  aid,  legislation,  municipal,  neighborhood  clubs, 
parks  and  playgrounds,  publicity  and  statistics,  public  health, 
remedial  loan  association,  retail  cooperation,  smoke  prevention, 
state  and  county  cooperation,  summer  attractions,  street  im- 
provement, trade  extension,  traffic,  taxation  and  wholesale  co- 
operation, besides  an  executive  committee  and  an  advisory  com- 
mittee. Manifestly  it  would  be  impossible  for  the  members  of 
the  public  affairs  committee  to  keep  in  touch  with  every  minute 
detail  of  the  work  done  by  these  sub-committees  if  the  mem- 
bers of  the  whole  committee  were  called  upon  to  do  so ;  the  club 
would  soon  lose  much  of  its  efficiency  and  influence. 

As  stated,  our  constitution  provides  for  one  yearly  meet- 
ing of  the  whole  membership  of  the  club.  The  annual  meeting 
is  held  on  the  evening  of  the  club  election  day,  and  we  usually 
have  a  good  attendance.  That  is  no  doubt  aided  by  the  inter- 
est in  the  results  of  the  election,  as  we  always  have  more  candi- 
dates for  directors  than  there  are  places  to  be  filled. 

The  annual  election  provides  a  splendid  opportunity  of 
getting  the  club's  work  before  the  members  in  concise  form  in 
reports.     However,  the  public  affairs  committee  meetings  are 


306  METHODS  OF  ORGANIZATION  AND  OPERATION. 

our  business  meetings.  The  fact  that  they  are  open  to  all  the 
membership  of  the  club,  robs  them  of  what  might  be  objection- 
able exclusiveness ;  they  serve  the  same  purpose  as  the  club 
meeting,  but  they  have  many  times  the  efficiency. 

I  believe  each  club  should  settle  the  matter  of  meetings 
for  itself.  Conditions  vary  and  they  must  be  met  with  a  knowl- 
edge of  the  local  situation.  In  some  cities  the  noon  meeting  is 
impracticable.  In  other  cities  night  meetings  fail  to  draw 
crowds.  Each  club  must  study  its  own  needs  and  experience. 
Tliere  is  only  one  general  rule  that  may  be  applied  in  all  cases. 
If  you  are  not  satisfied  with  your  present  system,  you  should 
seek  for  something  better.  The  club  without  good  live  meet- 
ings, rich  in  results  of  benefits  to  the  community,  is  not  doing 
the  work  that  should  be  done  by  a  live  commercial  organization. 


Committee  Technique 

Conservation  of  Committee  Energy 
By  S.  CHRISTY  MEAD 

The  modern  commercial  organization,  whether  of  larger  or 
smaller  dimensions,  is  the  expression  in  commercial  commu- 
nity affairs  of  the  operation  of  the  law  of  cooperation  and  co- 
ordination of  effort  on  the  part  of  individual  units  for  greater 
efficiency  in  the  accomplishment  of  results  beneficial  to  the 
'?ommunity.  The  operation  of  such  an  organization  calls  into 
3lay  an  influence  of  peculiar  potency,  pregnant  with  great  pos- 
K^ibilities  for  the  future  development  of  the  community  in  which 
it  is  located. 

Power,  however,  when  permitted  to  run  uncontrolled  may 
produce  incalculable  harm,  while  merely  partial  control  or 
mis-control  of  power  results  in  a  waste  of  valuable  energy  which 
is  injurious  to  the  community  in  the  proportion  in  which  that 
waste  is  permitted. 

The  question  of  proper  control  and  direction  of  this  energy, 
and  of  the  conservation  of  the  human  resources  from  which  that 
energy  springs,  is  the  most  important  problem  in  connection 
with  the  conduct  of  commercial  organization  work.  The  solu- 
tion of  that  problem  should  be  such  as  to  produce  the  maximum 
of  results  with  the  minimum  of  demands  upon  the  time  and 
(Mierg\^  of  the  members,  officers  and  staff  of  an  organization. 


COMMITTEE  TECHNIQUE.  307 

whereby  the  greatest  degree  of  efficiency  Avith  the  least  possible 
loss  of  energy  and  motion  shall  be  secured. 

I  know  of  no  subject,  therefore,  more  important  for  study 
and  consideration  on  the  part  of  the  secretary  or  administra- 
tive officer  than  that  of  conserving  this  energy  and  thereby  mag- 
nifying this  efficiency. 

The  Secretary's  Function 

It  is  his  function  primarily,  to  suggest  to  his  organization 
the  proper  steps  for  this  conservation.  His  suggestion  will  be 
heeded,  however,  largely  in  proportion  to  the  effectiveness  with 
which  he  has  applied  this  principle  of  conservation  to  himself 
and  to  the  conduct  of  the  work  which  falls  under  his  immediate 
and  personal  jurisdiction,  whether  it  is  performed  by  himself 
individually,  or  through  the  medium  of  paid  assistants  of  a 
larger  or  smaller  number.  Therefore,  the  application  of  the 
principle  of  conservation,  from  the  secretary's  standpoint, 
should  be  made,  in  the  first  instance,  to  himself  and  the  conduct 
of  his  own  work. 

He  should  have  a  complete  comprehension  of  the  nature 
of  his  duties  and  of  the  problems  in  the  community  in  which 
he  is  serving,  in  order  that  he  ma^^  be  able  to  determine  how 
best  to  plan  for  the  conservation  of  the  time  and  energy-  of  him- 
self and  his  employees  in  performing  that  work,  and  to  provide 
for  the  greatest  possible  volume  of  effective  operations  within 
a  given  time.  Systematization  of  office  methods,  coupled  with 
such  a  clear  comprehension  of  the  task  and  of  the  specific  prob- 
lems arising  from  time  to  time,  is  his  prime  duty,  first  to  him- 
self, second,  to  his  profession,  and,  third,  to  the  organization 
which  he  serves. 

But  the  secretary  and  his  paid  organization  merely  consti- 
tute machinery  through  which  the  organization  itself  is  work- 
ing. They  are  the  tools  of  the  members  composing  the  organi- 
zation, and  the  secretary  who  fails  to  realize  this  fact  and  con- 
duct his  work  accordingly  stands  in  his  own  light  and  fails  to 
live  up  to  the  standards  of  his  profession.  It  is  not  my  purpose 
here  to  dwell  in  further  detail  upon  the  application  of  the  prin- 
ciple of  conservation  by  the  secretary  to  his  own  mental  proc- 
esses and  to  the  conduct  of  his  own  technical  work,  because 
in  one  important  phase  after  another  such  application  is  being 
discussed  in  various  papers  presented  by  my  contemporaries. 


308  METHODS  OF  ORGANIZATION  AND  OPERATION. 

Source  of  Energy 

The  vital  source  of  energy  in  any  organization  resides  in 
its  membership  and  not  in  its  paid  staff.  The  ability  to  con- 
serve that  energy  and  to  utilize  it  for  his  organization  with 
the  greatest  degree  of  effectiveness  and  with  a  minimum  of 
demand  upon  the  time  of  the  business  men  who  constitute  the 
membership  is  the  most  valuable  single  asset  which  any  secre- 
tary may  possess. 

The  main  channel  through  which  potential  energy  stored 
in  the  membership  reservoir  may  be  rendered  active  and  effec- 
tive is  through  the  committees  of  the  organization,  and  I,  there- 
fore, purpose  to  discuss  somewhat  in  detail  my  conception  of 
some  methods  of  applying  the  principle  of  conservation  to  com- 
mittee energy. 

Two  observations  should  be  made  as  a  preliminary  to  the 
discussion  of  the  subject : 

1.  The  limitations  imposed  upon  the  secretary  through  in- 
adequate financial  and  consequent  mechanical  assistance  will 
require  the  modification  of  any  ideal  or  perfect  plan  of  com- 
mittee operation  so  as  to  fit  it  within  the  confines  of  the  limita- 
tion in  any  particular  instance.  The  ability  of  the  secretary  to 
adapt  the  principles  to  the  limitations  of  a  specific  case  is  one 
of  the  tests  of  his  qualifications. 

2.  Each  individual  differs  in  his  personality  from  each 
other  individual.  Committees  are  merely  aggregates  of  indi- 
viduals, and,  therefore,  the  composite  personality  presented  by 
one  committee  differs  from  the  composite  personality  presented 
by  another  committee.  The  application  of  a  plan  to  conserve 
committee  energies  should  take  this  fact  into  consideration, 
and  any  principles  of  conserving  committee  energy,  in  their 
application,  should  conform  or  be  moulded  to  the  personality  of 
each  separate  committee. 

Conditions  Precedent 

The  conservation  of  committee  energy  is  predicated  upon 
the  assumption  that  that  energy  exists  and  can  be  made  avail- 
able. This  presumes  certain  conditions  conducive  to  energy  and 
its  conservation. 

First  and  foremost  among  these  conditions  is  the  fact  that 
the  committee  must  be  working  in  and  as  a  part  of  a  general 
organization  which,  in  its  method  of  structure  and  operation, 


COMMITTEE  TECHNIQUE.  300 

is  effective  in  accomplishing  results  for  its  community,  based 
upon  the  recommendations  which  the  committee  has  presented 
as  a  result  of  its  painstaking  care  in  study  and  investigation. 

Effectiveness  of  the  organization  in  achieving  results,  and 
thereby  cr^^stallizing  into  actuality  the  recommendations  of  a 
given  committee  for  the  permanent  benefit  of  the  commerce, 
industry,  or  welfare  of  the  community,  greatly  stimulates  the 
interest,  activity  and  energy  of  the  business  men  who  are  serv- 
ing, without  compensation,  upon  the  committee. 

Converselj^  ineffectiveness  in  doing  things  and  accomplish- 
ing results  cannot  fail  to  discourage  the  members  of  the  com- 
mittee, and  thereby  to  destroy  its  energy  beyond  any  power  of 
conservation  on  the  part  of  the  secretary  or  administrative 
officer.  The  reward  for  the  effort  which  the  committeeman 
puts  forth  lies  chiefly  in  the  accomplishment  of  that  which  he 
has  recommended. 

A  second  condition  precedent  to  the  conservation  of  com- 
mittee energy  relates  to  the  composition  of  the  committee  it- 
self, and  depends  upon  the  selection  of  the  most  efficient  and 
competent  members  available. 

Every  committee  should  be  made  up  primarily  of  business 
men  of  general  intelligence,  sound  judgment  and  general  ex- 
perience, and  should  include  among  its  members  some  with 
special  knowledge  of,  and  special  experience  in,  the  subjects 
falling  under  the  jurisdiction  of  the  committee.  It  is  always 
helpful  that  there  should  be  among  the  members  of  the  given 
committee  at  least  one  man  representing  each  of  the  parties 
affected  by  the  subject  falling  under  the  committee's  jurisdic- 
tion, but  it  is  always  better  that  there  should  be  a  preponder- 
ance of  disinterested  businessmen. 

The  advantage  to  be  gained  by  this  practice  lies  in  the  fact 
that  all  phases  of  the  subject  are  insured  careful  consideration 
in  the  deliberations  of  the  committee  with  the  result  that  the 
recommendations  finally  decided  upon  are  made  in  view  of  the 
rights  of  all  parties  concerned.  It  is  much  better  to  have  these 
conflicting  lights  thoroughly  considered  in  committee  delibera- 
tions rather  than  to  have  them  first  come  to  attention  after  the 
report  of  the  committee  has  been  rendered  and  is  before  the  gov- 
erning body  for  final  consideration  and  action. 

But  above  all,  it  is  necessary  that  every  committee  should 
be  made  up  of  men  of  broad  mind  who  will  test  all  proposed 


310  METHODS  OF  ORGANIZATION  AND  OPERATION. 

recommendations  by  the  principle  of  a  square  deal ;  or  in  other 
words,  men  who  will  always  conscientiously  endeavor  to  ob- 
tain a  satisfactory  answer  to  the  question,  "What  is  right  and 
fair  for  all  parties  concerned?" 

A  third  condition  precedent  to  the  conservation  of  com- 
mittee energy  lies  in  the  selection  of  proper  bases  of  committee 
jurisdiction.  This  jurisdiction  should  rest  upon  principles  and 
subjects — not  upon  business  or  geographical  interests.  But 
whatever  the  basis  of  committee  jurisdiction  may  be,  it  should 
be  so  clearly  defined  that  each  committee  may  comprehend  the 
field  for  which  it  is  responsible  in  its  investigation,  so  that 
conflict  of  jurisdiction  between  different  committees  of  the  same 
organization  may  be  avoided. 

Jurisdiction  based  upon  interests,  either  business  or  geo- 
graphical, almost  inevitably  leads  to  emphasis  of  selfish  mo- 
tives, and  to  the  effort — perhaps  unconscious,  but  nevertheless 
present — to  attain  results  through  the  activities  of  the  organi- 
zation for  the  benefit  of  the  particular  interest  which  the  com- 
mitteemen represent. 

Committee  energy  and  efficiency  also  bear  a  close  rela- 
tionship to  the  question  of  length  of  term  of  committee  mem- 
bership. There  are  two  practices  in  vogue  in  this  matter :  the 
first  providing  for  a  short,  fixed  term,  and  the  second  for  a 
continuing,  indefinite  term. 

The  reason  ordinarily  advanced  for  the  use  of  the  short, 
fixed  term  is  that  thereby  a  greater  number  of  members  of  an 
organization  may  be  brought  into  active  work,  and  that  the 
interest  of  the  membership  in  the  organization  and  its  support 
is  correspondingly  increased. 

It  is  fundamentally  true  that  a  man  takes  an  interest  in 
any  movement  in  proportion  to  what  he  puts  into  it  in  time, 
effort  or  money,  and  yet  the  average  business  man  hardly  equips 
himself  to  become  most  useful  to  his  organization  as  a  mem- 
ber of  a  committee  before  he  has  served  upon  that  committee  for 
one  or  two  years. 

From  the  membership  standpoint  alone,  this  short  term 
plan  may  have  some  merit,  but  from  the  standpoint  of  efficiency 
and  the  conservation  of  the  energy  of  a  committee,  the  plan  of  a 
continuing,  indefinite  term  seems  to  be  much  more  desirable. 

By  this  latter  process,  the  members  of  a  given  committee, 
the  jurisdiction  of  which  is  predicated  upon  principles  and  sub- 


COMMITTEE  TECHNIQUE.  311 

jects,  gradually  become  technically  educated  in  respect  to  those 
subjects  with  the  result  that  the  organization  is,  after  a  while, 
equipped  with  a  committee  of  disinterested  experts,  serving 
without  compensation.  The  continuity  of  term  also  preserves 
continuity  of  the  work  of  the  committee  and  insures  consistency 
in  its  successive  recommendations  relative  to  the  same  subject. 

Facilities  for  Committee  Work 

Most  of  the  work  of  committees  is  done  in  committee  meet- 
ings. Experience  differs  as  to  the  method  of  holding  such  meet- 
ings. In  some  organizations  committee  meetings  are  held  at 
stated  intervals,  while  in  other  organizations  such  meetings  are 
held  from  time  to  time,  as  the  subject  falling  under  its  juris- 
diction becomes  active.  The  meetings  under  this  plan  are  called 
under  order  from  the  chairman. 

It  seems  to  me  that  the  plan  of  stated  regular  meetings 
possesses  certain  disadvantages  which  do  not  pertain  to  the 
plan  of  holding  meetings  subject  to  call.  If  the  committee's 
jurisdiction  is  predicated  upon  principles  and  subjects,  the  mat- 
ters falling  within  that  jurisdiction  do  not  provide  a  steady  and 
continuous  flow  of  work,  with  the  result  that  at  times  the  sub- 
jects will  be  very  active  and  at  other  times,  for  some  intervals, 
the  subjects  will  practically  be  dormant. 

The  operation  of  the  plan  of  stated  regular  meetings,  ir- 
respective of  the  activity  of  the  subjects  falling  under  the  com- 
mittee's jurisdiction,  seems  to  be  conducive  to  loss  of  energy 
in  two  respects;  first,  in  the  secretary  and  his  office  staff,  be- 
cause every  meeting  held  or  postponed  entails  time  and  expense 
in  the  office  machinery,  and  second,  and  more  important,  in 
the  members  of  the  committee,  by  unnecessarily  consuming 
their  time  and  attention.  The  member  of  a  committee  is  pre- 
sumed to  be  a  man  actively  engaged,  and  more  or  less  engrossed, 
in  the  conduct  of  his  own  personal  business  affairs.  Conse- 
quently, any  demand  upon  his  time  in  connection  with  the  com- 
mittee meeting,  where  the  subject  to  be  considered  is  not  of 
really  serious  importance,  is  an  unnecessary  sacrifice  of  time 
on  his  part.  The  unnecessary  consumption  of  his  time  is  sure 
to  discourage  him,  and,  therefore,  to  reduce  his  contribution  of 
energy  to  the  committee,  and  at  the  same  time  to  reduce  the 
contribution  of  energy  on  the  part  of  every  other  member  of 
the  committee. 


312  METHODS  OF  ORGANIZATION  AND  OPERATION.     . 

When,  however,  committee  meetings  are  not  held  at  stated 
intervals,  but  are  subject  to  call  as  the  importance  and  activity 
of  the  subject  matter  under  the  jurisdiction  of  the  committee 
may  warrant,  the  office  Avork  and  expense  is  reduced  to  a  mini- 
mum, the  time  and  energy  of  the  committeeman  is  conserved, 
and  his  interest  and  effectiveness  stimulated. 

Under  the  operation  of  the  plan  of  meetings  subject  to  call, 
the  day  and  hour  of  the  committee  meeting  should  be  selected 
to  meet  the  greatest  convenience  of  the  greatest  number  of 
members  on  the  committee. 

Similarly,  the  place  of  meeting  should  be  adapted  to  the 
convenience  of  the  committee  in  order  to  obtain  the  greatest 
amount  of  interest  and  energy  on  the  part  of  the  committeemen. 
Preferably,  every  meeting  of  each  committee  should  be  held  in 
the  headquarters  of  the  organization.  It  is  helpful,  both  to  the 
members  of  the  staff  and  to  the  membership  of  the  association, 
to  have  a  maximum  number  of  members  visiting  the  headquar- 
ters on  association  business  as  frequently  as  possible.  If  it  is 
inconvenient  for  a  given  committee  to  meet  in  the  headquarters 
of  the  association  some  other  place  should  be  selected,  provided 
a  greater  degree  of  interest  and  activity  on  the  part  of  the  mem- 
bers of  the  committee  may  be  insured  thereby. 

In  connection  with  the  effective  deliberation  of  the  com- 
mittee, the  character  and  efficiency  of  the  special  assistance  is 
most  important.  In  the  first  place,  there  must  be  committee 
secretarial  work.  T\Tiether  this  is  done  by  the  general  secretary 
of  the  organization  or  b}^  some  assistant  delegated  to  serve  the 
particular  committee,  he  should  be  a  man  of  keen  intelligence 
in  regard  to  the  subjects  falling  under  the  jurisdiction  of  his 
committee,  and  must  be  accurate  and  efficient  in  preparing 
preliminaries,  in  tactfully  facilitating  deliberations,  in  colla- 
ting the  results  thereof,  in  formulating,  if  instructed,  clear, 
concise  and  convincing  reports  and  recommendations,  in  keep- 
ing records  and  minutes  of  committee  meetings,  and  in  realiz- 
ing that  he  is  the  instrument  of,  and  not  the  dictator  to,  his 
committee. 

To  be  efficient,  he  should  be  tactful,  self-respecting,  and  at 
all  times  alert  in  keeping  watch  over  the  subjects  falling  under 
the  jurisdiction  of  the  committee  and  in  advising  the  chairman 
when  those  subjects  require  committee  deliberation  at  a  meet- 
ing. 


COMMITTEE  TECHNIQUE.  313 

Another  form  of  assistance  from  the  staff  which  is  very 
effective  in  stimulating  and  conserving  committee  energy  con- 
sists in  carefully  preparing  a  digest,  or  analysis,  of  the  sub- 
jects to  be  considered  at  the  committee  meeting,  which  digest 
best  serves  its  purpose  when  sent  to  each  member  of  the  com- 
mittee for  his  information  before  the  time  of  the  committee's 
deliberations. 

This  plan  requires  a  skill  and  ability  on  the  part  of  the 
secretary  far  greater  than  required  for  the  mere  mechanical 
recording  duties,  but  the  operation  of  this  plan  excites  the  com- 
mitteeman's interest,  tends  to  clarify  his  ideas,  facilitates  the 
orderly  conduct  of  the  committee's  deliberations  when  in  ses- 
sion, conserves  the  member's  time,  tends  to  increase  attendance 
at  committee  meetings,  and  is  conducive  to  concentraition  of 
thought  and  to  sound  conclusions  on  the  part  of  the  committee. 

The  committees  being  composed  of  business  men,  most  of 
whom  have  not  the  time  even  if  they  have  the  training  for  ana- 
lytical or  research  work,  it  is  most  important  that  upon  many 
subjects  some  machinery  should  be  provided  through  which 
analytical  or  research  work  may  be  conducted  which  will  sup- 
ply a  fact  basis  upon  which  the  judgment  of  the  committee  may 
be  exercised  and  its  conclusions  may  rest.  Some  of  the  larger 
organizations  are  able  to  equip  themselves  with  technical  mem- 
bers of  the  staff  to  perform  this  service  for  the  various  commit- 
tees. Many  organizations  are  not  able  so  to  equip  themselves 
and  the  duty  either  to  do  that  work  himself  or  to  obtain  the 
cooperation  of  some  public-spirited  expert,  then  devolves  upon 
the  secretary,  although  in  some  instances  the  chairman  or  a 
member  of  the  committee  will  undertake  this  rather  arduous 
work.  By  whomever  this  work  is  done  it  must  be  accurate  and 
comprehensive  in  order  that  the  committee's  judgment  may  be 
sound  and  its  conclusions  may  commend  themselves  to  the  gov- 
erning body  and  to  the  community  which  its  organization  is 
serving.  This  character  of  research  work  for  the  committees 
should  deal  essentially  and  exclusively  with  facts,  and  should 
be  free  from  personal  opinion  or  personal  bias. 

In  dealing  with  subjects  of  a  technical  character,  it  is  from 
time  to  time  important  that  technical  expert  assistance  to  the 
committee  should  be  provided.  Where  the  financial  resources 
of  the  institution  permit,  this  expert  assistance  may  be  retained 
and  paid  for,  but  where  the  financial  resources  will  not  permit. 


314  METHODS  OI'  ORGANIZATION  AND  OPERATION. 

then  again  an  opportunity  for  important  service  opens  to  the 
secretary. 

In  addition  to  these  fundamental  methods  of  assistance  to 
the  committee,  there  is,  of  course,  to  be  expected  such  steno- 
graphic and  clerical  service  as  may  be  needed  or  as  the  facili- 
ties and  financial  limitations  of  the  institution  may  afford. 

Methods  of  Committee  Work 

The  primary  function  of  a  committee  is  to  investigate  a 
subject  of  importance  pertaining  to  its  field  of  jurisdiction  and, 
based  upon  the  facts  and  conclusions  drawn  therefrom,  to  make 
recommendations  to  the  governing  body  as  to  what  should  be 
the  attitude  of  the  organization  upon  the  question  of  princix)le 
or  policy  involved. 

Through  the  instrumentality  of  the  digest  of  the  subject 
sent  in  advance  of  the  meeting,  and  through  the  results  of  ana- 
lytical research  work  made  for  or  by  the  committee,  its  delib- 
erations can  best  be  concluded  through  a  process  whereby  each 
member  of  the  committee  individually  studies  and  reflects  upon 
the  material  prepared,  so  as  to  insure  on  his  part  a  compre- 
hension of  the  subject,  a  sense  of  its  relation  with  other  sub- 
jects, and  an  understanding  of  the  effect  of  any  given  line  of 
action  to  be  recommended. 

It  the  matter  is  one  of  wide  interest  a  very  valuable  as- 
sistance to  the  committee  arises  from  the  holding  of  committee 
hearings  at  an  announced  day  and  hour,  at  which  the  members 
of  the  organization  or  the  business  men  affected  may  have  an 
opportunity  to  narrate  their  experiences,  express  their  opin- 
ions, and  declare  their  individual  recommendations. 

From  the  information  thus  obtained  by  the  two  steps  al- 
ready mentioned,  the  committee  then  has  a  basis  for  mature 
and  intelligent  discussion  of  the  subject  at  an  executive  session, 
after  which  the  committee  will  arrive  at  conclusions,  and  then, 
either  themselves  or  through  their  secretary,  will  formulate  an 
analysis  of  the  facts  and  a  statement  of  their  recommendations 
into  a  report  to  be  presented  for  the  consideration  of  the  gov- 
erning body  of  the  organization. 

The  operation  of  the  committee  hearing  is  not  only  bene- 
ficial to  the  committee  itself,  but  it  also  has  a  very  stimulating 
effect  upon  the  entire  membership  of  the  organization.  It  is, 
therefore,  an  excellent  plan  to  foster  as  much  as  possible  the 
holding  of  such  committee  hearings. 


COMMITTEE  TECHNIQUE.  315 

But  in  addition  to  the  investigative  and  recommendative 
functions  of  the  committee,  it  has  a  secondary  duty  of  an  ad- 
ministrative nature.  After  its  report  and  recommendations 
have  been  considered  by  the  governing  body,  and  the  attitude 
of  the  organization  to  the  subject  in  question  has  thereby  been 
determined,  it  becomes  the  duty  of  the  organization  to  endeavor 
to  accomplish  the  result  thus  found  to  be  desirable  or  neces- 
sary. 

The  modern  commercial  organization  is  formed  primarily 
for  the  purpose  of  accomplishing  results  in  the  improvement 
of  business  conditions  and  welfare  of  the  community  and  in 
raising  the  standards  of  business  morality  and  ethics.  The 
earlier  stage  of  committee  work  concerning  any  subject  is,  in 
that  sense,  a  preliminary  stage,  while  the  latter  stage  of  en- 
deavoring to  give  effect  to  the  conclusions  reached  is  the  fma! 
and  more  important  stage. 

Herein  lies  the  secondary,  or  administrative,  usefulness  of 
the  committee.  Many  of  the  subjects  of  committee  considera- 
tion have  to  do  with  legislation,  others  with  the  conduct  of 
municipal  affairs,  as  they  relate  to  commerce  and  industry,  and 
others  with  trade  practices. 

In  all  these  matters  the  accomplishment  of  the  results  de 
termined  to  be  desirable  is  insured  only  by  cooperation.  In 
this  connection,  the  committee,  with  its  full  knowledge  of  the 
subject  derived  from  careful  study  and  deliberation  which  it 
has  given  thereto,  is  usually  best  equipped  to  present  the  mat- 
ter in  hand  to  legislative  committees  and  to  other  business  men 
in  the  community. 

The  opportunity  for  the  secretary,  as  chief  administrative 
officer,  to  marshal  and  utilize  these  forces  for  the  accomplish- 
ment of  results  is  one  of  the  greatest  opportunities  which  comes 
to  him.  His  ability  to  grasp  such  opportunities  and  crystallize 
them  into  actualities  to  a  very  considerable  extent  measures  the 
degree  of  his  usefulness  to  his  organization  and  to  his  commu- 
nity. 

Conclusion 

Summary — Conservation  of  Committee  Energies 

1.     Conditions  Precedent. 

A.     A  general  organization  effective  for  accomplishing  results  after  com- 
mittee recommendations  have  been  adopted. 

1.  Effectiveness  stimulates  interest,  activity  and  energy  in  committee- 
men. 


316  METHODS  OF  ORGANIZATION  AND  OPERATION. 

2.  Ineffectiveness  discourages  and  thereby  decreases  efficiency  in  com- 
mitteemen. 

B.  Effectiveness  in  Selecting  Committeemen. 

1.  Men  of  general  intelligence. 

2.  Men  of  sound  .iudgment. 

3.  Men  of  general  experience. 

4.  Business  men  of  special  knowledge  of  subject. 

5.  Business  men  of  special  experience  in  the  subject. 

6.  Men  who  represent  various  parties  affected  by  the  subject,  with  a 
preponderance,  hovvever,  of  disinterested  business  men. 

7.  Men  who  will  test  all  recommendations  by  the  principle  of  a  square 
deal,  or,  in  other  words,  by  what  is  right  and  fair  for  all  parties 
concerned. 

C.  Basis  of  Committee  Jurisdiction. 

1.  Jurisdiction  should  be  clearly  defined. 

2.  Jurisdiction  should  be  based  on  subjects  and  principles. 

3.  Jurisdiction  should  not  be  based  on  interests. 

D.  Term  of  Committee  Membership. 

1.  Short  fixed  term. 

(a)  From  standpoint  of  membership  interest  short  fixed  term  has  some 
advantages. 

(b)  From  standpoint  of  committee  efficiency  short  term  is  undesirable. 

2.  Continuing  indefinite  term. 

(a)  Committeemen  become  trained  experts  in  subject-matter. 

(b)  Preserves  continuity  of  committee  work. 
2.     Facilities  for  Committee  Work. 

A.  Meetings. 

1.  Stated  regular. 

(a)  Entails  unnecessary  office  work  and  expense. 

(b)  Consumes  committeemen's  time  unnecessarily. 

(c)  Tends   to   discourage  interest   and   therefore   reduces   committee 
energy. 

2.  Subject  to  call. 

(a)  Meetings  should  be  called  only  when  matters  of  importance  re- 
quire attention  and  justify  consumption  of  time  of  committeemen. 

(b)  Reduces  office  work  and  expense. 

(c)  Conserves  time  and  energy  of  committeemen. 

(d)  Stimulates  interest  and  energy. 

3.  Time  of  meetings. 

(a)  Day  and  hour  of  greatest  convenience  to  committee  members. 

4.  Place  of  meetings. 

(a)  Preferably  in  organization  headquarters. 

(b)  Other  place  if  greater  convenience  of  committeemen  is  served 
thereby. 

B.  Staff*  Assistance. 

1.  Committee  secretary, 
(a)   Intelligent  in  regard  to  his  committee  subjects, 
(b)  Accurate  and  efficient. 

1.  In  preparing  preliminaries  ; 

2.  In  tactfully  facilitating  committee  deliberations ; 

3.  In  collating  results  of  committee  deliberations ; 

4.  In  formulating,  if  instructed,  clear,  concise  and  convincing  re- 
ports  and    recommendations ; 


STAFF  RELATIONS  WITH  MEMBERS.  317 

5.  In  realizing  that  he  is  the  instrument  of  and  not  the  dictator 
to  his  committee ;  and 

6.  In  keeping  records  and  minutes  of  committee  meetings. 

(c)  Tactful. 

(d)  Self-respecting. 

(e)  Alert  in  advising  chairman  when  subjects  require  meetings. 

2.  Digest  of  subjects  of  meetings  to  accompany  notices. 

(a)  Excites  interest. 

(b)  Increases  attendance. 

(c)  Facilitates  orderly  conduct  of  deliberations. 

(d)  Conserves  time. 

(e)  Conducive  to  concentration  and  sound  conclusions. 

3.  Analytical  or  research  work  to  supply  basis  of  fact  upon  which 
judgment  may  rest. 

(a)  Accurate; 

(b)  Comprehensive;  r 

(c)  Concise;  and 

(d)  Free  from  personal  opinions  or  bias. 

4.  Employment  of  tec-hnical  experts  as  needed. 

5.  Stenographic  and  clerical  assistance  as  needed. 
3.     Methods  of  Committee  Work. 

A.  Primary  or  investigative. 

.1.  Personal  study  and  reflection  by  each  committeeman. 

2.  Committee  hearings. 

3.  Committee  discussion  at  executive  session. 

4.  Committee  conclusion. 

5.  Committee  report  to  governing  body. 

B.  Secondary  or  administrative. 

1.  In  assisting  to  accomplish  results  after  committee  recommendation 
has  been  adopted  and  has  become  the  fixed  policy  of  the  organiza- 
tion. 

(a)  Securing  cooperation  of  other  business  men. 

(b)  Writing  personal  letters. 

(c)  Appearance  before  legislative  committees,  etc. 


Staff  Relations  With  Members 

Stimulating  the  Organization  Machinery 
By  JOHN  M.  TUTHER 

Just  as  far  as  it  is  possible,  the  directing  force — the  work- 
ing force  of  the  organization — should  be  made  up  of  as  many 
of  its  members  as  can  be  given  something  to  do.  There  should 
be  a  democracy  in  the  efforts  of  the  commercial  organization. 
Those  in  charge  of  its  affairs  can  do  no  better  thing  than  to 
devote  a  very  large  part  of  their  thought  in  planning  how  to 
bring  into  its  varicms  undertakings  just  as  many  of  its  mem- 
bers as  can  be  begged,  dragged,  shamed,  cajoled  or  drafted  into 
its  service.    To  retain  their  interest,  we  must  depend  upon  as- 


318  METHODS  OF  ORGANIZATION  AND  OPERATION. 

feigning  them  to  work  on  something  in  which  they  are  interest- 
ed, or  in  which  there  is  good  reason  to  believe  they  may  be- 
come interested.  Of  course,  all  the  members  cannot  be  brought 
in,  perhaps  not  even  a  majorit}^  of  them.  There  will  always  be 
the  merely  contributing  member,  and  I  am  far  from  minimi- 
zing the  useful  part  these  cheerful  non-working  members  play. 
It  is  amazing,  though,  even  to  those  who  have  opportunity  to 
observe,  the  gratifying  number  of  men  who  have  a  desire,  or  a 
willingness  at  least,  to  get  into  the  chamber  of  commerce  work 
in  some  manner  or  other. 

Element  of  Enthusiasm 

Those  in  charge  of  the  organization  work  must  learn  how 
to  deal  with  enthusiasm.  They  must  acquaint  themselves  with 
the  hobbies  and  the  manner  of  thought  of  a  large  part  of  the 
members,  so  that  when  one  of  them  brings  his  enthusiasm  and 
his  strength  and  his  talent  to  the  organization,  he  may  be 
helped  to  gather  around  him  other  members  whose  enthusiasm 
runs  along  the  same  lines  as  his  and  whose  tastes  are  similar. 
Then  this  little  group  of  willing  men  can  be  given  the  sanc- 
tion and  the  blessing  of  the  whole  organization,  armed  and 
equipped  and  sent  forth  to  do  the  sort  of  work  they  are  inter- 
ested in.  They  can  then  have  the  comforting  knowledge  that 
the  conveniences  and  the  assistance,  which  a  well  conducted 
organization  has,  is  at  their  disposal.  They  can  have  the  as- 
surance, moreover,  that  back  of  them  in  all  of  their  worthy 
work  is  the  full  endorsement  and  the  strength  of  the  whole 
organization.  This  group  then  becomes  a  part  of  the  machin- 
ery, a  part  of  stimulated  machinery — an  auto-stimulated  part 
of  the  machinery. 

One  of  the  elementary  things  in  the  effective  stimulation 
of  the  commercial  organization,  is  the  proper  dealing  wdth  the 
enthusiasm  of  its  members.  It  is  the  bounden  duty  of  a  com- 
mercial organization  to  hold  itself  so  that  it  can  use  the  indi- 
vidual enthusiasm  and  the  hobbies  of  its  members.  It  is  the 
wrong  policy  for  a  commercial  organization  to  lay  do\ATi  a  pro 
gram  of  work  in  cold  blood  and  adhere  to  that  to  the  exclusion 
of  all  else.  There  should  be  a  program  of  some  sort.  Each  year 
the  organization  should  set  out  to  do  a  few  big  things  and  these 
things  held  to  until  they  are  done.  Its  policy  should  be  so 
formed,  its  machinery  should  be  so  regulated,  it  should  so  adapt 


STAFF  RELATIONS  WITH  MEMBERS.  319 

itself  that  it  can  take  to  itself  and  give  cohesion  and  shape  and 
force  to  an  almost  unlimited  number  of  public  services. 

Nothing  gives  more  enthusiasm  and  therefore  stimulation 
to  the  membership  than  the  spectacle  of  a  well  working,  result- 
getting  committee,  or  division,  or  bureau — call  it  what  you 
will,  doing  things,  pleasing  themselves  because  they  are  en- 
gaged in  something  they  delight  in  doing,  edifying  others,  en- 
thusing others,  stimulating  others  to  the  good  and  happiness 
and  uplift  of  all  their  fellow  members.  And  more  than  this, 
attracting  those  who  are  not  members  to  come  in  and  do  their 
part. 

Do  Not  Withhold  Applause 

When  a  committee  has  completed  its  task  and  its  mem- 
bers are  not  averse  to  newspaper  publicity,  or  rather  like  it^ — 
a  good  many  of  them  do — the  sagacious  secretary  just  must  not 
make  the  ghastly  blunder  of  withholding  the  applause  from 
those  who  deserve  it.  And  on  the  other  hand,  those  rarer  mem- 
bers who  do  things  and  who  do  not  let  their  right  hand  know 
what  their  left  hand  doeth,  those  should  be  shielded  from  the 
publicity  which  is  really  distasteful  to  them.  Make  not  the 
mistake,  I  beg  of  you,  of  confusing  these  two  distinct  classes. 

The  working  members  of  this  organization — and  the  suc- 
cess or  failure  of  the  organization  itself  depends  almost  entire- 
ly upon  the  proportion  of  its  members  who  are  working  mem- 
bers— should  be  provided  with  every  comfort  and  convenience 
for  doing  their  work.  Those  in  charge  of  committees,  bureaus, 
and  so  forth,  must  not  be  unmindful  of  the  little  things  that 
big  men  so  often  set  so  much  store  by.  The  committee  rooms 
should  be  quiet,  inaccessible  to  the  loafer  and  the  bore.  The 
clerk  of  the  committee  should  be  tactful  and  quiet,  and  compe- 
tent and  pleasing.  Care  should  be  taken,  too,  that  the  busy 
men  of  these  committees  can  be  reached  from  their  own  places 
of  business  quickly  and  conveniently.  I  have  known  the  work 
of  some  bureaus  and  committees  to  actually  fail  and  become 
wholly  ineffective,  and  the  committee  fall  to  pieces,  because 
the  men  who  were  giving  their  time  to  some  activity  of  the  or- 
ganization could  not  feel  quite  sure  that  in  case  of  need  they 
could  be  reached  quickly  and  surely  from  their  owti  places  of 
business. 

A  thing  to  be  avoided,  a  practice  all  too  common,  is  that 
of  taking  up  of  subscriptions  at  either  general  meetings  or 


320  METHODS  OF  ORGANIZATION  AND  OPERATION. 

committee  meetings.  Nothing  so  dampens  enthusiasm,  notli- 
ing  should  be  so  unmistakably  tabooed.  Say  what  one  will  of 
the  liberality  of  the  members  of  certain  committees;  say  what 
you  will  as  to  the  spontaneous  character  of  donations,  it  cer- 
tainly does  take  the  run  out  of  many  a  good  worker  and  it 
prevents  many  a  member  from  attending  his  committee  meet- 
ings if  he  thinks  there  is  a  likelihood  even  of  being  called  upon 
to  pay  money.  Not  all  of  them  are  that  way,  of  course,  thank 
heaven  for  that,  but  many  of  them  are,  and  it  ought  to  be 
understood,  thoroughly  and  unmistakably  understood,  that  ex- 
cept for  the  committees  appointed  for  the  specific  purpose  of 
raising  money,  no  member  of  any  committee  or  any  bureau  or 
any  board  should  suggest  that  those  present  at  any  meeting 
chip  in  for  anything  at  any  time  for  any  purpose  anywhere. 

A  Genial  Committee  Spirit 

Experience  has  shown  that  there  are  some  committees, 
like  a  membership  committee,  for  example,  in  whose  delibera 
tions  a  certain  amount  of  pleasantry  may  be  introduced  with  a 
good  stimulating  effect.  I  have  in  mind  a  membership  com- 
mittee which,  having  been  appointed,  of  course,  for  the  purpose 
of  holding  the  membership,  not  only  does  the  work  for  wbich 
it  was  created  but  has  its  meetings  so  enjoyable^they  are  held 
fortnightly — that  instead  of  a  mere  committee  of  25  there  are 
in  attendance  as  the  invited  guests  of  the  members  more  than 
100.  They  have  a  quartette,  which,  with  more  or  less  spon- 
taneity breaks  into  song  at  the  proper  time — I  nearly  said  the 
psychological  moment,  but  didn't.  Their  meetings  are  looked 
forward  to  with  genuine  pleasure  by  its  members  and  those 
who  are  invited  to  attend.  They  not  only  hold  the  member- 
ship but  steadily  increase  it.  Its  chairman,  of  course,  is  a  rare 
character,  a  man  full  of  a  desire  to  serve,  a  helpful,  cheering, 
successful  man,  with  a  good  liver  and  a  pleasant  smile  and  a 
hopeful  view  of  every  situation  that  comes  up.  The  meetings 
of  his  committee  are  affairs  of  importance  and  of  great  so- 
ciability and  delight — functions  of  good  will  and  good  fellow- 
ship and  other  good  things.  Stories  are  told  and  songs  are 
sung  and  experiences  are  recounted  and  celebrities  are  enter- 
tained, and  all  the  time  members  are  secured,  the  powers  of 
the  organization  are  enlarged,  the  strength  of  its  machinery  is 
increased  and  everybody  connected  with  the  work  is  pleased. 

Frequent  meetings  of  the  full  membership  are  after  all 


STIMULATING  THE  ORGANIZATION  MACHINERY.  321 

the  most  powerful  and  yet  the  most  simple  of  all  the  stimuli 
yet  discovered  for  the  commercial  organization.  Nothin<»'  in 
my  judgment  will  so  conduce  to  promote  the  necessary  pride 
in  membership^  the  sense  of  being  a  part  of  the  organization,  as 
frequent  opportunity  to  take  part  in  its  deliberations.  It  acts 
like  magic  sometimes  on  a  membership  whose  interest  is  begin- 
ning to  wane,  to  hear,  not  merely  read,  what  has  been  done  by 
the  commercial  organization.  I  know  of  nothing  more  inspir- 
ing than  to  hear  the  chairman  of  some  active  committee— not 
the  secretary,  however  gifted  and  eloquent  the  secretary  may 
really  be,  but  to  hear  the  chairman  relate  to  the  full  member- 
ship what  he  and  his  associates  did  in  achieving  some  definite 
result.  It  amounts  to,  indeed  it  is,  the  rendering  of  a  report 
of  a  finished  up  and  complete  job.  Membership  meetings  where 
advice  and  criticisms  are  asked  from  anybody  present;  where 
misapprehensions — and  there  are  so  many  misapprehensions  in 
this  work — may  be  set  right,  are  not  the  least  of  the  good  re- 
sults which  come  from  the  town  meeting  idea  of  commercial 
organizations. 

The  Man  from  the  Outside 

Bringing  experts  outside  of  the  membership,  preferably 
from  a  distance,  to  address  the  members  on  some  of  the  phases 
of  the  Avork  in  which  they  are  engaged,  is  highly  stimulating 
and  beneficial.  Indeed,  this  particular  sort  of  stimulation  is 
well  recognized.  It  is  regarded  by  those  who  know,  as  one  of 
the  most  useful  means  of  arousing  interest  in  the  work  of  the 
chamber  of  commerce.  The  necessity  for  this  sort  of  stimu- 
lation is  well  recognized  by  other  bodies  and  has  been  used  for 
centuries  by  the  Catholics  in  their  Missions  and  the  Protestants 
in  their  revivals.  The  skilled  expert  wiio  comes  from  a  dis- 
tance, who  brings  a  message,  who  knows  what  he  has  to  say 
and  says  it,  has  more  Aveight  as  a  general  thing  than  the  local 
man  even  though  he  speak  with  the  tongues  of  men  and  of 
angels.  So,  the  secretary  with  understanding  will  encourage 
rather  than  throw  cold  w^ater  on  the  suggestion  to  engage  out- 
side efficiency  experts  to  stimulate  and  instruct.  If  he  has 
not  already  had  the  experience,  he  will  learn  that  such  visi- 
tations are  good,  not  only  for  the  members  but  for  the  staff 
of  the  organization.  He  will  learn,  if  he  does  not  already  know, 
that  with  rare  exceptions  a  visiting  expert  is  of  tremendous 
value  to  him ;  that  most  of  them  are  kindly  and  well  disposed 

12 


322  METHODS  OF  ORGANIZATION  AND  OPERATION. 

and  skilled  and  that  they  are  moved  by  a  desire  to  encourage 
and  help  and  make  easy  the  thorny  path  of  the  secretary.  There 
should  be  no  little  feeling  of  jealous^^  or  of  fear  on  the  part  of 
a  secretary  not  quite  sure  of  himself  that  some  of  his  directors 
or  members  who  may  be  unfriendly  to  him,  may  make  invidious 
comparisons  and  draw  uncomplimentary  conclusions. 

He  who  feareth  his  own  job  is  an  unhappy  man  and  verily 
he  standeth  a  good  chance  of  losing  the  same.  And  then  some 
of  these  self-styled  experts  are  really  very  inexpert.  Not.  in- 
frequently their  theories  wilt  under  the  strong  sun  of  practi- 
cal experience.  That  secretary,  therefore,  who  has  stood 
against  unwise  plans  which  are  unwise  notwithstanding  they 
may  be  advocated  by  the  experts,  will  be  all  the  stronger  with 
his  members  and  directors.  So,  these  experts  bona  fide  and 
bogus  are  useful  and  as  one  who  has  seen  both  kinds,  I  say, 
may  their  sturdy  tribe  increase! 

Affability  and  Good  Humor 

Ordinary  cheerfulness  on  the  part  of  the  secretary  is  poAV- 
erfully  stimulating.  Now,  I  don't  mean  that  a  secretary  should 
be  too  darned  pleasant.  Certainly  not  of  the  writhing  Uriah 
Heep,  hand- wringing  sort.  I  mean  just  an  affable,  good-hu- 
mored attitude  of  mind  on  the  part  of  the  secretary.  Difficult 
though  it  may  be,  hoAvever,  the  able-headed  secretary  must  cul- 
tivate and  get  it  and  keep  it  and  have  it  on  display.  Cheer- 
fulness, pleasantness,  a  sustained  sympathetic  attitude  and  tact- 
fulness,  especially  for  those  who  may  be  rather  objectionable 
and  whose  ideas  are  visionary  and  whose  personality  may  be 
displeasing.  Just  ordinary  good-natured  cheerfulness,  that  is 
one  of  the  surest  ways  of  stimulating  the  machinery.  Praise 
to  subordinates  when'  they  need  it;  not  when  they  need  it 
either,  but  when  they  deserve  it.  Public  recognition  before 
committees  and  general  meetings  of  the  excellence  of  some  par- 
ticular piece  of  Avork,  of  some  one  over  whom  a  secretary  has 
authority.  An  absence  from  jealousy  or  small-souled  envy. 
These  things  contribute  to  stimulating  and  strengthening  the 
work  of  the  machinery.  Thoughtfulness,  kindness,  a  shrink- 
ing from  humiliating  others  or  hurting  others'  feelings ;  all  of 
these  qualifications  work  to  make  the  performance  of  the  duties 
of  the  secretary  pleasantly  stimulating  to  most  of  those  with 
whom  he  comes  in  contact. 


Office  Administration 

The  Technique  of  Organization  Administration 
By  ROBERT  WADSWORTH 

The  answers  to  a  list  of  questions  sent  to  a  hundred  and 
fifty  secretaries,  several  of  whom  replied,  form  the  basis  of  this 
paper. 

It  is  assumed  that  we  want  more  than  a  tabulation  of  re- 
plies; if  from  the  number  of  responses  to  each  question,  one 
method  can  be  selected,  which  for  use  in  our  organization  seems 
most  practicable  and  most  advanced,  we  want  that.  Acquaint- 
ance with  other  methods  is  incidental. 

I  have  been  strongly  of  the  opinion  that  the  discussion  of 
these  points  is  sure  to  be  unproductive  if  some  one  does  not 
select  and  defend  those  methods  which  seem  to  him  to  be  the 
most  advanced  and  helpful;  so  these  arbitrary  opinions  are 
given  with  the  hope  of  stimulating  the  subsequent  discussion, 
in  order  that,  so  far  as  possible,  it  may  be  conclusive. 

The  questions  are  here  repeated  and  considered  in  order: 

General  Questions 

Do  you  make  up,  at  the  beginning  of  the  year,  a  specific 
program  of  work?  (a)  For  the  entire  organization?  (b)  For 
the  main  committees?  If  so,  please  describe  briefly  the  method 
of  determining  it. 

While  it  is  agreed  that  a  considerable  number  of  special 
activities  cannot  be  planned  in  advance,  yet,  with  the  increase 
in  demand  for  efficiency,  our  organizations,  like  city  adminis- 
trations, are  being  submitted  to  business  tests  under  recognized 
standards  of  measurements.  One  such  -test  is  its  program  of 
work.  The  commercial  organization  usually  has  not  followed 
a  definite  program,  but,  opportunist-like,  has  scattered  its  ener- 
gies according  to  the  whims  of  its  officers.  Having  no  formally 
determined  aim,  there  was  lack  of  concentration,  and  a  conse- 
quent failure  to  arrive  at  any  previously  determined  place  at 
any  predetermined  time;  for  an  organization,  like  an  indi- 
vidual, has  just  about  so  much  time,  energy  and  ability,  and 
must  conserve  it  and  apply  it  with  care. 

A  program  of  work,  covering  at  least  the  major  activities, 
is  being  introduced  in  a  growing  number  of  organizations,  judg- 
ing from  responses. 

323 


824  METHODS  OF  ORGANIZATION  AND  OPERATION. 

In  arriving  at  the  program,  the  principle  of  maintaining 
the  interest  of  snpjjorters  by  soliciting  their  counsel  is  applied. 
By  various  devices  each  member  is  asked  to  state  what  he  be- 
lieves the  organization  should  undertake  as  of  first  importance 
during  the  ensuing  je-dr.  Replies,  tabulated,  after  eliminating 
the  petty  and  visionary,  are  approved  in  principle  by  the  board 
of  directors,  who,  through  their  constituents,  have  then  adopted 
a  platform  for  their  term  in  office.  This  constitutes  the  major 
activities  of  the  year,  the  guide  for  the  entire  organization,  al- 
though there  are  ahvays  unforeseen  opportunities  for  service. 

Previous  to  the  initial  meeting  of  each  committee,  to  which 
the  various  planks  in  the  platform  have  been  assigned  (and 
the  aim  is  not  to  have  any  committees  which  do  not  have  work 
to  do,  and  to  make  each  committee  have  in  mind  as  definitely  as 
possible  the  work  which  it  has  to  do),  the  secretary  outlines  a 
committee  program:  specific  as  to  task,  general  as  to  method, 
which  briefly  sets  forth  the  complete  job  of  the  committee,  and, 
so  far  as  possible,  suggests  the  line  of  action.  This  is  revised, 
in  conference  with  the  chairman.  It  is  then  the  task  of  the  com- 
mittee to  review  and  adopt  this  program.  It  is  the  sole  subject 
of  discussion  at  the  initial  meeting,  and  until  adopted.  Each 
committee  is  then  expected  to  progress  in  accordance  with  a 
schedule  or  calendar  agreed  to  when  it  starts  work,  the  various 
calendars  being  consolidated  by  the  secretary  of  one  New  Eng- 
land organization  into  a  so-called  "master  calendar,''  of  which 
there  are  two  copies,  each  corrected  up  to  date.  One  is  in  the 
secretary's  charge,  and  the  other  in  the  possession  of  the  presi- 
dent.   This  shows  what  is  due  on  any  particular  date. 

Not  only  is  a  definite  goal  established,  which  is  necessary 
to  maximum  accomplishment,  but,  more  important,  the  officers 
learn  what  hopes  are  closest  to  the  individual  member,  which 
helps  to  bridge  that  gap,  which  all  secretaries  realize  is  too 
wide,  between  the  officers  and  members  at  large.  Further,  the 
very  act  of  writing  down  and  sending  in  a  suggestion,  like  the 
act  of  electing  a  board  of  directors,  gives  the  member  an  added 
sense  of  participation  and  identification  with  the  affairs  of  liis 
organization — an  attitude  of  Avhich  we  all  know  the  value. 

The  Use  of  Charts 

Is  the  plan  of  your  organization  charted?  If  so,  will  you 
give  the  different  uses  to  which  chart  is  put? 


OFFICE  ADMINISTRATION.  325 

This  question,  I  believe,  was  not  precise  enough.  There 
are  two  kinds  of  charts;  the  large  size,  for  wall  use,  on  which 
is  recorded  committee  meetings,  steps  of  progress,  and  the  task 
in  prospect,  all  of  which  visualizes  to  its  members  the  advance 
of  the  organization,  and  stimulates  each  committeeman  to  keep 
his  own  stride  up  to  the  pace. 

But  the  chart  referred  to  is  the  one  which  shows  the  ana- 
tomy of  the  organization,  and  the  question  meant  particularly 
to  bring  out  the  use  that  is  made  of  them.  Less  than  ten  or- 
ganizations make  use  of  such  a  chart,  although  more  have  them. 
These  are  mainly  in  the  very  large  cities,  where  a  means  of 
bringing  about  a  better  understanding  by  the  members  of  the 
Avorking  machinery  of  the  organization  is  relatively  more  of 
a  problem.  Among  those  organizations  not  using  charts,  the 
leading  reason  is  the  fear  that  the  machine  and  the  running  of 
the  wheels  will  play  too  important  a  part  in  the  activities  of  the 
office  staff,  that  the  mechanism  will  be  considered  as  the  end 
rather  than  the  means.  We  all  realize  that  if  the  chart  is  to 
be  of  most  help,  it  must  have  some  propulsive  force. 

One  organization's  chart  not  only  has  some  flesh  on  its 
bones,  but  a  suit  of  clothes.  This  chart  is  a  salesman.  The 
common  form  of  ruled  box  for  each  unit  is  used.  In  addition 
to  its  name,  however,  is  printed  in  each  box,  in  extremely  con- 
densed form,  the  accomplishments  of  that  committee,  and  its 
claim  to  support  or  at  least  appreciation.  Two  examples  are 
giyen : 

SOLICITING    SCHEMES 

The  Department  of  Soliciting?  Schemes  continues  its  work  of  report- 
ing on  solicitations  for  whatever  purpose — philanthropy — bazaars — en- 
tertainments— v^ar  relief — ^peace  propoganda — special  editions — adver- 
tising:— business  directories — year  books  and  magazines.  It  is  esti- 
mated that  this  Department  saves  the  business  men  of  Cleveland 
$50,000  annually. 

PUBLIC  SAFETY 

This  committee,  which  was  instrumental  in  securing  Cleveland's 
system  of  high  pressure  mains  and  the  high  pressure  pumping  sta- 
tion, has  been  gathering  further  data  in  regard  to  protection  from 
fire  in  the  Cleveland  public  schools. 

I  imagine  the  initial  meeting  of  this  organization's  mem- 
bership committee  is  devoted  to  a  lecture  on  this  chart  and 
its  significance.  The  chart  has  the  visualizing  advantage  that 
all  others  have,  because  it  shows  the  organization's  structure, 
but  it  is  also  first  aid  to  the  membership  solicitor. 


326  METHODS  OF  ORGANIZATION  AND  OPERATION. 

Another  organization  exploits  its  chart  among  members, 
affiliated  organizations,  the  city  government,  and  the  general 
public,  to  remind  them  of  the  facilities  which  it  offers  for  work- 
ing out  community  problems,  which  they  cannot  work  out  alone. 
This  organization  has  found  it  of  great  value,  preventing  dupli- 
cation of  community  energy  and  money. 

Form  of  Reports 

What  in  general  is  included  in  your  annual  report?  (a) 
Do  you  think  the  tendency  is  toward  a  more  condensed  form? 
(b)  Toward  a  more  graphic  form? 

With  few  exceptions,  replies  indicate  the  tendency  to  con- 
dense. In  a  few  more  years  the  common  annual  report  may  be 
Avithout  a  copy  of  the  solemnly  adopted  constitution  and  by- 
laws. 

Granted  that,  so  far  as  mem^bers  are  concerned,  the  organi- 
zation's accomplishments  are  its  dividends,  and  must  be  ex- 
ploited to  the  greatest  possible  advantage,  if  general  interest 
is  to  be  retained;  granted  that  the  annual  report  in  which 
committee  work  is  described  in  considerable  detail  is  used  only 
as  a  reference  work ;  granted  that  some  account  of  an  organiza- 
tion's activities  is  desirable,  but  that  with  few  exceptions,  the 
news  in  it  is  read  only  when  fresh,  why  should  not  the  activi- 
ties of  the  organization  be  reported  monthly?  Public  interest 
is  a  great  deal  more  liable  to  absorb  them.  Accomplishments 
can  be  related  more  elaborately  so  that  the  yearly  report  need 
be  only  the  briefest  review  of  the  larger  work,  for  detail  of 
which  reference  is  made  to  the  various  monthly  reports;  but 
with  no  reference  to  organization  routine  or  those  defensive 
arguments  and  appeals  for  support  on  which  the  occasional  re- 
port lingers,  as  if  in  apology  for  the  secretary's  employment, 
or  even  the  organization's  existence. 

The  monthly  report  system  has  this  greater  advantage;  in 
the  opinion  of  one  eastern  member  of  the  association,  "As  a 
general  proposition,  we  have  no  standards  by  which  we  meas- 
ure our  own  work  or  the  work  of  the  organization.  It  is  this 
entire  absence  of  standard,  plus  the  absence  of  comparative 
statements,  necessarily  made  public  at  short  intervals,  that 
are  at  the  bottom  of  most  organizations'  inefficiency.  It  is 
mighty  hard  to  induce  us  to  use  devices  that  measure  our  daily 
work.  The  unavoidable  obligation  to  make  frequent  compara- 
tive reports  works  wonders,  I  believe." 


OFFICE  ADMINISTRATION.  327 

In  committee  reports  of  the  best  known  organizations.  I 
find  a  full  committee  list  put  right  out  in  front.  One  organiza- 
tion uses  the  chairman-s  photograph  with  each  committee  re- 
port, while  several  put  the  full  committee  list  in  the  margin 
opposite  the  text.  As  a  means  of  extending  committee  work, 
of  making  acceptance  of  committee  appointments  more  certain, 
and  of  giving  committeemen  the  feeling  of  participation  in  the 
affairs  of  the  organization,  this  method  is  plainly  good  business. 

Pictorial  forms  to  supplement  reports  are  in  favor.  These 
are  splendid  for  rapid  comprehension,  usuallj^  to  explain  how 
the  work  and  income  of  the  organization  is  apportioned.  Where 
the  program  of  work  is  laid  out  as  mentioned  in  our  considera- 
tion of  question  one,  parallel  columns  are  used,  the  planks  in 
the  platform  are  the  debit  column  and  in  the  other  are  credited 
the  things  on  the  program  done  and  those  done  which  were 
not  on  the  program.  In  this  plan  the  sentences  are  short  and 
pointed.    This  is,  in  fact,  a  real  trial  balance. 

In  the  reports  of  the  organizations  which  are  generally 
regarded  as  most  successful,  the  name  of  the  secretary  never 
appears,  except  when  necessary.  The  accomplishments  are  al- 
Avays  those  of  the  committees  and  directors. 

The  Use  of  Bulletin  Boards 

Few  organizations  use  a  bulletin  board,  the  common  rea- 
son being  that  its  headquarters  have  no  club  feature  in  connec- 
tion. Those  which  use  them  fmd  them  valuable.  They  are  at- 
tractively made  and  conspicuously  placed.  Photographs  of 
municipal,  industrial  and  commercial  interest;  new  buildings; 
local  city  improvements ;  mattei-s  of  more  or  less  general  inter- 
est, which  hardly  justify  the  expense  of  a  circular  to  members ; 
miscellaneous  matters  of  local  interest,  and  clippings  and 
photos  showing  what  those  in  nearby  cities  of  similar  size  are 
doing,  combine  to  give  the  office  an  atmosphere  of  interest  in 
community  affairs,  and  headquarters  for  general  information 
concerning  it.  One  organization  maintains  on  its  bulletin  board 
a  public  events  register,  on  which  is  kept  a  record  of  coming 
public  events,  so  that  activities  planned  for  weeks  ahead,  by 
different  organizations,  can  be  scheduled,  to  avoid  conflicting 
dates. 

Two  organizations,  located  in  upper  floors  of  office  build- 
ings, have  installed  attractive  bulletin  boards  on  the  first  floor 


328  METHODS  OF  ORGANIZATION  AND  OPERATION. 

lobbies  of  the  buildings,  opposite  the  elevator,  on  which  mat- 
ters of  interest  even  broader  than  those  of  the  organizatir?n 
are  shown,  the  display  being  changed  often.  These  cork  bul- 
letin boards  form  the  back  of  an  all-glass  case,  not  more  than 
two  or  three  inches  deep.  It  gives  the  organization  an  oppor- 
tunity to  extend  the  use  of  its  facilities  to  strangers  in  the  city, 
and  in  this  way  supplements  the  signs  of  the  organization's 
hospitableness,  often  posted  in  hotels  and  railroad  stations. 

Membership  Activities 

Do  you  have  mail  referenda,  either  in  connection  with  or 
as  a  substitute  for  the  open  meeting?  What  material  relating 
to  the  question  accompanies  the  mail  ballot? 

It  is  interesting  to  see  with  what  positiveness  a  half  dozen 
of  the  more  experienced  secretaries  differ  on  the  advantages 
of  the  open  meeting  and  the  mail  referenda.  Those  in  favor  of 
the  open  meeting  say  that  only  such  a  discussion  produces  new 
ideas;  more  interest  is  aroused;  there  is  a  better  opportunity 
for  individual  explanation  and  joint  debate ;  that  voting  by  mail 
is  perfunctory,  and  that  members  need  the  stimulus  of  the 
open  meeting  to  formulate  their  opinions. 

The  defenders  of  the  mail  ballot  say  the  vote  of  the  man 
who  thinks  the  least  and  speaks  the  loudest  is  heard  in  the  open 
meeting;  the  mail  ballot  is  more  representative,  because  the 
crank  and  the  interested  party  have  no  opportunity  of  mak- 
ing their  special  plea,  and  w^ritten  judgment  is  in  the  main  cool, 
well-considered,  and  represents  conviction. 

A  Southern  secretary  states  that  he  has  found  the  open 
meeting  positively  harmful;  that  on  live  subjects  bitterness  is 
often  threatened;  that  it  rarely  brings  out  thoughtful  discus- 
sion by  thoughtful  men. 

A  very  intelligent  mail  vote  can  be  taken  only  if  the  two 
sides  of  the  argument  are  comprehensively  stated  in  the  notice 
that  is  sent  with  the  ballot.  It  is  on  the  fairness  and  complete- 
ness of  this  statement  that  the  satisfaction  of  members  with  the 
mail  ballot  probably  rests.  Of  course,  the  mail  ballot  gives 
the  two  sides  no  opportunity  for  answering  questions  asked  by 
their  opponents.  I  do  not  believe  this  is  a  question  on  which 
organizations  ever  will  entirely  agree.  A  large  portion  of  sec- 
retaries believe  in  combining  the  two  methods,  or  in  varying 
the  method  to  suit  the  question.     Most  of  us,  I  think,  have 


OB^FICE  ADMINISTRATION.  329 

found  occasions  when  one  method  was  better,  and  others  when 
the  other  was. 

Getting  Acquainted 

How  is  acquaintance-making  conducted,  especially  with 
new  members?  A  commendable  and  common  way  of  making 
new  members  acquainted  with  older  ones  and  with  each  other, 
seems  to  be  a  variation  of  this  program :  To  follow  the  mem- 
ber's notification  of  election  with  a  friendly  note  from  the  ac- 
quaintance committee  or  some  member  of  it.  One  organization 
apportions  its  new  members  among  the  members  of  the  acquain- 
tance committee,  and  a  fcAv  days  before  the  next  noon  luncheon 
the  committeeman  writes  the  new  member,  putting  himself  at 
the  new  member's  service  for  that  occasion,  inviting  the  new 
member  to  meet  him  fifteen  or  twenty  minutes  early,  at  the 
place  where  the  meeting  is  to  be  held,  and  then  devoting  him- 
self to  that  new  member  before  and  during  the  meeting,  intro- 
ducing him  as  widely  as  possible. 

New  members,  where  there  are  not  too  many  of  them,  are 
frequently  asked  to  introduce  themselves  in  open  meetings.  A 
few  organizations  place  cards  at  the  tables,  asking  members  to 
introduce  themselves  to  those  near  them.  It  is  frequent  prac- 
tice to  tag  members  with  name  and  business  connection. 

One  organization  has  a  series  of  six  cards  which  it  places 
at  all  plates.    Three  samples  follow : 

"All  of  the  other  fellows  at  the  table  are  interested  in  the  growth 
and  betterment  of  Minneapolis,  just  as  you  are.  G«t  acquainted  with 
them.  Introduce  yourself.  Minneapolis  will  advance  more  rapidly 
if  you  fellows  work  together  than  if  you  try  to  go  it  alone.  The 
growth  of  Minneapolis  means  profit  and  satisfaction  to  each  of  you. 
It's  worth  something  to  know  a  lot  of  folks,  anyway." 

Acquaintance  Committee. 

"Friendship  is  the  keystone  of  success.  If  you  are  going  to  be  a  real 
help  in  building  up  Minneapolis,  you  must  form  friendships  with  the 
'good  fellows'  right  here  at  this  table.  Obey  that  impulse.  Grab 
your  neighbor's  hand,  and  tell  him  who  you  are.  Ten  to  one  he  is 
thinking  of  grabbing  your  hand  right  now.    Beat  him  to  it." 

Acquaintance  Committee. 

"If  a  friend  were  to  come  to  you  now,  while  you  are  sitting  here 
and  say,  'would  you  like  to  do  something  right  now  for  the  Civic  & 
Commerce  Association?'  you  would  say,  'You  bet  I  would ;  what  is  it?' 

"GET  ACQUAINni:D  WITH  THE  FELLOWS  AT  THIS  TABLE. 

"We  can't  get  the  results  of  which  this  Association  is  capable  unless 
we  all  pull  together,  and  strangers  make  poor  teammates.  Won't 
you  introduce  yourself?"  The  Acquaintance  Committee. 


330  METHODS  OF  ORGANIZATION  AND  OPERATION. 

Specific  Entertainment  Features 

Do  vou  have  any  specific  entertainment  features  at  mem- 
bership meetings?  With  the  exception  of  music  at  meals,  there 
seem  to  be  few  widely  accepted  entertainment  features.  Most 
secretaries  report  that  members  want  all  work  or  all  play.  This 
question  was  meant  to  cover  only  business  meetings  and  noon 
meetings  with  speakers. 

From  what  sources  do  you  maintain  your  list  of  prospec- 
tive members?  This  question  is  a  minor  one.  Secretaries  re- 
port everything,  however,  from  city  directories  to  maternity 
hospitals  as  sources  of  information. 

Do  you  have  a  system  for  registering  and  following  up  for 
solicitation,  guests  who  attend  your  luncheon  meetings  or  social 
affairs?  Few  organizations  are  getting  the  names  of  guests 
who  attend  luncheon  meetings  and  social  affairs.  Those  who 
do  use  it  find  the  list  of  prospects  a  preferred  one. 

Can  you  suggest  any  unique  membership  campaign  meth- 
ods? This  question,  although  very  important,  should  not  have 
been  included,  as  the  subject  cannot  be  presented  in  abridged 
form.  A  high  percentage  of  organizations  has  deterinined 
definitely  to  eliminate  future  impulsive  campaigns  with  spec- 
tacular feature^,  in  which  the  prospective  member  receives  the 
impression  that  he  is  being  invited  to  join  the  organization 
merely  to  help  some  one  win  a  hat  or  an  annual  baseball  pass. 
One  secretary  after  another  states  that  the  member  who  does 
not  know  what  the  chamber  can  and  cannot  do  for  him  and 
does  not  understand  what  he  is  expected  to  do  for  the  chamber, 
will  be  neither  a  valuable  nor  permanent  asset. 

The  campaign  method  is  not  going  out,  of  course.  It  never 
will,  I  suppose,  for  we  know  that  it  is  not  natural  for  the  in- 
dividual or  organization  to  plan  very  much  in  advance  of  ac- 
tual need.  The  average  member,  content  to  be  passive  while 
affairs  are  running  prosperously,  will  arise  nobly  to  a  crisis  if 
the  organization  will  create  that  crisis  for  him  and  put  it  up 
to  him  plainly. 

The  proportion  of  new  members  secured  in  a  campaign 
who  later  do  not  qualify  is  probably  due  not  so  much  to  the 
flurry  during  which  they  came  in  as  to  the  lack  of  assimilative 
effort  made  by  the  organization  during  the  first  year  or  trv^o  of 
his  membership  when  his  mind  is  in  a  particularly  impression- 
able attitude  toward  the  organization. 


OFFICE  ADMINISTRATION.  331 

Arrears  and  Delinquents 

Do  you  permit  members  to  resign  while  in  arrears?  Prac- 
tically all  organizations  say  "in  theory,  no;  in  practice,  yes, 
after  means  of  persuasion  have  been  exhausted."  Two  organi- 
zations have  used  and  collected,  but  too  recently  to  state  with 
what  collateral  results. 

Will  you  state  your  method  of  procedure  with  delinquent 
members?  The  responses  show  no  one  method  which  is  praise- 
worthy enough  to  be  mentioned  in  detail,  although  practically 
all  secretaries  report  that  the  number  is  greatly  cut  down  by 
personal  calls,  not  to  collect,  but  to  clear  up  possible  misunder- 
standings. In  some  organizations  these  are  made  by  members 
of  the  staff,  in  others  by  members  of  a  special  committee  ap- 
pointed and  trained  for  the  purpose.  In  collection  letters  the 
emphasis  is  laid  on  what  the  organization  is  doing,  not  that 
it  needs  the  money. 

How  often  are  bills  for  dues  sent  out?  Bills  for  dues  in 
different  commercial  organizations  are  mailed  out  in  a  great 
variety  of  intervals.  The  question  is  more  important  than  is 
customarily  supposed.  I  believe  there  is  a  great  advantage  in 
having  bills  mailed  out  yearly,  and  no  oftener.  I  heard  an  ex- 
perienced secretary  once  say  that  "A  bill  for  dues  was  a  psy- 
chological invitation  to  resign ;''  at  least  it  will  be  agreed,  I 
believe,  that  the  receipt  of  a  bill  puts  a  man  on  the  defensive. 
It  is  gently,  but  actually,  asking  him  to  sign  a  new  contract. 
A  man  usually  feels  as  if  he  is  depriving  himself  if  he  doesn't 
take  this  occasion  to  consider  what  the  organization  has  done 
during  the  period  since  his  last  payment  that  displeased  him 
or  what  it  failed  to  do  that  he  strongly  favored. 

Let  us  take  the  case  of  an  organization  that  bills  its  mem- 
bers four  times  a  year,  and  let  us  assume  that  the  typical  mem- 
ber is  not  typical,  and  that  he  pays  his  dues  for  each  quarter 
promptly  and  without  a  second  notice.  At  the  end  of  a  year  he 
has  received  at  least  four  bills  for,  let  us  say,  |6.25;  he  has 
made  out  four  checks  for  |6.25,  and  has  received  four  receipts 
for  $6.25.  One  organization's  experience  actually  proves  that 
men  feel  that  their  financial  support  of  the  organization  is 
greater  than  if  once  a  year  they  got  a  bill  and  signed  a  check 
for  twenty-five  dollars.  The  average  man  who  is  billed  four 
times  a  year  (and  this  is  one-half  as  true  of  the  semi-annual 
plan)  will  receive  a  bill  for  the  next  period  so  soon  after  re- 


332  METHODS  OF  ORGANIZATION  AND  OPERATION. 

ceiving  the  receipt  for  the  previous  period,  even  if  he  pays 
promptly,  that  a  feeling  of  annoyance  results.  This  statement 
is  not  meant  to  apply  to  the  more  difficult  collections.  There 
is  the  additional  advantage  of  simpler  bookkeeping  in  favor  of 
the  annual  plan. 

Do  committees,  through  their  chairmen,  have  authority  to 
incur  minor  expenses  in  the  conduct  of  their  work  without 
specific  authorization  from  the  board  of  directors?  The  pre- 
dominant practice  is  against  expenditures  except  those  appro- 
priated in  the  budget.  In  spending  this,  committees  are  cus- 
tomarily given  full  authority. 

Who  Appoints  Committees? 

Two  organizations  have  tried  the  experiment  of  a  commit- 
tee on  committees  to  which  the  selection  of  all  standing  and 
special  committees  of  the  organization  is  referred.  The  sug- 
gested appointments  are  then  made  by  the  president.  The 
theory  is  that  a  committee  of  ^ye^  chosen  with  discrimination, 
Avill,  in  selecting  committees  for  various  purposes,  have  a  larger 
field  of  acquaintance  among  the  membership,  and,  because  it  is 
their  one  responsibility,  w^ill  act  with  more  deliberation  than  a 
president  and  board  of  directors,  whose  tendency  is  to  make 
and  confirm  such  appointments  hastily  and  from  closest  asso- 
ciates. 

How  are  committee-men  selected?  (1)  From  general  repu- 
tation for  zeal  and  adaptability?  (2)  From  previous  record  of 
committee  service?  (3)  From  a  requested  expression  of  the 
nature  of  work  most  interesting  to  them? 

Keplies  show  a  combination  of  the  three.  Previous  records 
for  good  committee  service  are  a  splendid  source,  but  an  effort 
should  be  made  to  get  as  many  untried  members  into  the  work 
as  possible. 

A  statement  by  a  member  of  what  particular  division  of  the 
organization  he  is  interested  in  is  a  valuable  starting  point, 
but  if  relied  upon  solely  or  largely  in  making  appointments, 
the  results  are  apt  to  be  disappointing. 

A  New  England  secretary  states  that  his  organization 
"tried  the  experiment  of  asking  members  what  committees  they 
would  be  willing  to  serve  upon,  and  found  that  method  de- 
cidedly unsatisfactory  and  objectionable.  In  most  cases,  a 
member  had  no  particular  qualifications  for  the  committees 


OFFICE  ADMINISTRATION.  333 

named  by  him,  and  frequently  there  were  circumstances  which 
made  his  appointment  on  some  or  all  of  the  committees  selected 
absolutely  impossible.  A  dealer  in  fire  extinguishers  or  fire 
alarm  apparatus  or  fire-proof  material  is  very  likely  to  say 
that  he  is  willing  to  serve  on  the  committee  on  fire  prevention, 
and  usually  he  cannot  see  why  he  should  not  be  appointed,  and 
when  you  have  asked  a  member  what  committee  he  would  be 
willing  to  serve  upon,  and  he  has  told  you,  and  then  he  is  not 
appointed,  he  is  very  likely  to  be  deeply"  offended."  A  man  will 
naturally  do  better  work,  hoAvever,  on  things  in  which  he  is  in- 
terested, and  a  knowledge  as  to  what  class  of  activities  he  is 
particularly  interested  in  is  valuable  as  07ie^  but  only  one,  of 
the  facts  upon  which  a  decision  should  be  based. 

Most  Effective  Unit 

The  tendency  is  toward  smaller  committees ;  five  and  seven 
are  commonly  mentioned.  An  interesting  tabulation  by  one 
secretary  shows  that  the  percentage  of  attendance  at  meetings 
is  greater  in  a  committee  of  nine  than  in  committees  of  any 
other  number.  As  the  size  of  the  committees  increases,  the  at^ 
tendance  percentage  decreases. 

Many  are  in  favor  of  a  committee  containing  about  nine 
men.  If  the  committee  is  smaller  than  that  it  is  not  represen- 
tative, and  one  man  with  strong  views  is  apt  to  control  it. 
When  a  committee  becomes  larger,  the  sense  of  personal  re- 
sponsibility of  each  member  decreases. 

If  a  decision  is  to  be  reached  on  a  question  which  affects 
many  people  in  different  ways,  and  if  there  are  a  number  of 
different  points  of  %aew  to  be  weighed  and  considered,  the  com- 
mittee should  be  large  enough  to  make  it  representative,  what- 
ever that  size  may  be. 

Is  there  a  tendency  to  increase  the  percentage  of  standing 
committees,  or  vice  versa?  The  tendency  to  increase  the  pro- 
portion of  special  committees  is  marked.  The  argument  be- 
hind the  tendency  is  common  and  unnecessary^  here. 

Have  you  a  regular  procedure  for  replacing  men  who  give 
unsatisfactory  committee  service?  The  majority  of  organiza- 
tions do  not  change  the  personnel  of  their  committees  during 
the  year,  a  few  replace  committeemen  whose  attendance  record 
is  unsatisfactory,  but  for  no  other  reason.  The  most  diplomatic 
way  to  do  this  seems  to  me  to  be  to  enlarge  the  committee  by 


334  METHODS  OF  ORGANIZATION  AND  OPERATION. 

a  number  equal  to  the  inactive  committeemen.  The  inactive 
men  remain  on  the  committee  nominally  for  the  year,  but  the 
committee  is  filled  up  with  active  men. 

Retaining  Committee  Interest 

Do  you  have  a  method  for  retaining  interest  in  the  work 
of  the  committee  on  the  part  of  committee-men  who  miss  one 
or  more  consecutive  meetings?  More  active  organizations  con- 
sistently send  copies  of  the  minutes,  or  at  least  the  leading 
portions  of  them,  or  verbal  reports  to  absent  committeemen 
so  that  their  interest  in  the  work  of  the  committee  is  retained 
and  they  feel  that  they  were  missed  at  the  conference  (although 
one  secretary  does  report  that  this  means  of  rewarding  com- 
mitteemen for  absence  has  not  worked  out  in  practice  with  him ) . 
This  plan  seems  to  be  the  best  known  one  of  keeping  committees 
intact. 

Do  you  have  a  system  for  following  up  work  of  the  com- 
mittees or  committee  chairmen?  One  secretary  writes  all  com- 
mittee minutes  in  duplicate,  giving  a  book  to  every  chairman. 
This  personal  minute  book  has  printed  on  the  outside  the  name 
of  the  chairman  and  the  name  of  the  committee ;  being  thus  dis- 
tinctive the  chairman  often  refers  to  it,  the  secretary  finds,  and 
keeps  the  work  well  in  mind. 

The  use  of  a  wall  chart  on  which  meetings  and  progress 
of  work  are  recorded,  referred  to  before,  stimulates  competi- 
tion among  the  committees.  A  few  organizations  make  up  on 
a  large  sheet  an  analysis  of  the  work  to  be  done  by  the  commit- 
tee. A  copy  is  given  to  the  chairman,  one  is  kept  by  the  secre- 
tary. The  complete  analysis  is  read  at  the  first  meeting  and 
kept  up-to-date. 

Are  new  matters  referred  to  standing  committees  by  the 
secretary  direct,  or  after  presentation  to  the  directors?  This 
question  is  handled  in  both  ways,  although  the  argument  seems 
to  be  in  favor  of  the  secretary's  referring  new  matters  to  com- 
mittees if  already  appointed.  Inasmuch  as  the  directors  must 
pass  on  committee  report-s  before  being  made  public,  the  method 
of  referring  to  committees  direct  greatly  relieves  the  pressure 
of  time  in  director's  meetings. 

Do  committees  ever  make  reports  public  before  submitting 
to  directors?     Almost  unanimouslv  "no.'' 


OFFICE  ADMINISTRATION.  335 

Securing  Committee  Attendance 

What  is  your  procedure  for  calling  and  reminding  commit- 
tee-men of  meetings?  Practically  all  organizations  have  the 
same  usage  regarding  mail  and  telephone  notices,  so  that  no 
further  comment  upon  general  methods  is  worth  while.  One 
western  organization  uses  a  striking  post  card  with  colored 
bands  (coloi*s  changed  weekly)  along  the  upper  and  lower 
edges.  On  one  side  is  printed,  in  contrasting  colors,  "The  pros- 
perity of  Spokane  means  much  to  you.  Your  efforts  should 
help  make  that  prosperity.''  On  the  two  bands  of  the  reverse 
side,  "The  Committee  has  business  to  do  for  Spokane.  Your 
help  is  needed  to  do  that  business." 

Will  you  send,  or  describe,  unusual  devices  you  have  found 
valuable:  (a)  To  supervise  progTess  of  director's  and  commit- 
tee's work?     (b)  To  expedite  secretary's  personal  work? 

(a)  One  secretary  mails  two  or  three  days  before  each  di- 
rectors' meeting  a  summary  of  the  matters  which  should  come 
up  for  consideration  at  that  meeting,  a  copy  of  committee  re- 
ports which  are  to  come  up  for  action,  and  a  copy  of  the  min- 
utes of  the  last  directors'  meeting.  He  finds  that  a  number  of 
directors  keep  a  file  of  these  minutes  and  value  this  feature, 
which  also  makes  it  unnecessary  to  listen  to  the  reading  of  the 
minutes,  in  which  instead  of  directors  present,  is  officially  re- 
corded the  list  of  absentees.  A  second  copy  of  the  program  of 
business  is  also  typewritten  and  laid  at  the  director's  place, 
which  hastens  matters,  each  director  being  able  to  see  at  a 
glance  how  much  more  work  there  is  to  come  before  that  par- 
ticular meeting.  It  is  well  worth  while  as  a  means  of  elimi- 
nating that  unnecessary  and  irrelevant  discussion,  which  the 
secretary  finds  so  exasperating.  The  president's  copy  shows 
in  detail  the  status  of  each  question  and  other  significant  in- 
formation. At  the  close  of  the  meeting,  an  extra  copy  of  the 
minutes  is  made  and  cut  up,  the  action  taken  in  reference  to 
each  report,  letter  or  memorandum  is  attached  to  it  and  dis- 
posed of  properly.  Matters  not  acted  upon  are  put  in  the  di- 
rectors' live  file  for  the  next  meeting. 

(b)  A  Pacific  Coast  secretary  says  he  has  found  it  valu- 
able when  some  important  piece  of  work  is  first  undertaken, 
to  have  made,  besides  a  special  file  in  which  all  matters  relat- 
ing to  it  are  kept,  a  general  record  sheet.  On  this  is  entered 
the  dates  when  meetings  on  the  subject  were  held  and  action 


336  METHODS  OF  ORGANIZATION  AND  OPERATION. 

taken,  so  that  it  is  possible  to  determine  at  a  glance  just  what 
has  been  done  on  that  piece  of  work  and  what  its  present  status 
is. 

Do  you  have  a  secretary's  chart  for  recording  significant 
membership,  financial  or  attendance  records  for  your  own 
use?  If  so,  please  send  sample  or  describe  briefly.  An  Ohio 
organization  reports  considerable  help  from  a  chart  ruled  both 
ways  having  the  years  spaced  across  the  top  so  that  one  chart 
serves  for  a  ten-year  period.  Along  one  vertical  side  of  the 
chart  properly  spaced  is  an  ascending  scale  of  financial 
amounts,  on  the  other  an  ascending  scale  of  plain  numerals. 
Records  of  general  meetings  of  the  membership,  number  of  ap- 
plications, resignations,  delinquencies,  committee  meetings 
held,  etc.,  can  be  plotted  in  lines  over  this  area  of  time,  the  ink 
for  these  items  being  of  the  same  color  as  the  plain  numerals. 
The  lines  Avhich  show  such  financial  statements  as  income,  ex- 
penditures, budget,  salaries,  etc.,  can  be  drawn  in  another  color 
of  ink  to  correspond  with  the  color  used  for  the  financial  fig- 
ures along  the  other  side  of  the  chart.  It  is  plain  that  the  sec- 
retary has  at  a  glance  the  general  tendency  of  the  most  vital 
affairs  of  his  organization. 

The  Handling  of  Publicity 

Do  your  office  assistants  handle  publicity  for  their  own 
committees?  "No"  almost  without  exception,  unless  by  semi- 
independent  bureaus  and  boards. 

■  Will  you  relate  what  you  consider  the  most  effective  way 
of  handling  news  in  the  local  papers?  In  their  own  way  the 
majority  of  secretaries  make  the  same  answer.  A  few  quota- 
tions follow:  "News  is  most  effectively  handled  if  each  paper 
tells  its  story  in  its  own  way  with  the  full  knowledge  of  the 
facts.''  "Take  the  newspaper  men  into  your  confidence."  "Cul- 
tivate the  acquaintance  of  the  editors."  "When  a  new  reporter 
comes  on  the  beat  take  time  to  acquaint  him  with  the  funda- 
mentals of  chamber  of  commerce  work."  "Do  not  expect  him 
to  write  intelligently  about  something  regarding  which  he 
knows  nothing." 

The  secretary's  name  is  never  used  where  unnecessary. 
Credit  for  various  chamber  activities  is  published  in  the  name 
of  the  organization  and  its  committees,  the  secretary  occasion- 
ally assisting  the  reporter  to  an  interview  with  the  chairman 


OFFICE  ADMINISTRATION.  337 

of  a  committee,  at  a  time  when  the  committee's  activities  will 
benefit  by  it. 

Is  it  written  out  in  your  office?  x\bout  one-half  of  the 
secretaries  have  the  news  matter  typewritten  in  their  own  of- 
fice, in  the  interest  of  accuracy  and  for  the  importance  of  get- 
ting the  right  slant  on  the  story.  Others  write  out  only  the 
more  important  or  delicate  stories,  leaving  the  balance  of  news 
to  the  handling  of  the  reporter.  Decision  on  this  question,  of 
course,  depends  upon  the  friendliness  and  ability  of  the  report- 
er. The  responses  are  evenly  divided  as  to  method.  One  ca- 
pable secretary  states  that  in  his  judgment  secretaries  too  often 
work  for  the  long  story,  when  short  ones  are  more  liable  to  be 
read,  and  permit  the  news  to  be  put  in  a  more  compact  form. 

Control  of  Assistants 

Does  the  secretary  in  your  organization  have  sole  control 
over  appointments  and  tenure  of  assistants?  In  practically 
every  case,  "yes." 

Will  you  give  your  reasons  for,  or  against  this?  Reasons 
Avere  practically  the  same,  and  are  well  known. 

What  is  your  opinion  as  to  the  relative  value  of  (a)  One 
and  two  cent  letter  postage  for  notices,  and  (b)  Stamped  and 
unstamped  return  post  cards? 

A  large  majority  of  organizations  use  two-cent  stamps  for 
notices  to  members.  A  smaller  majority  use  the  stamped  re- 
turn post  cards.  I  should  like  to  refer  here  to  a  system  used 
for  luncheon  meetings  by  a  northwestern  organization  for  tabu- 
lating the  number  of  replies  received  w4th  unstamped  cards. 

Luncheon 
Wednesday,  June  9,  '15  12  o'clock 

Mr.  David  Starr  Jordan 
Notices  sent  out,  6/4/15,  8,000. 

Acceptances  received,  6/5 21 

Acceptances  received,  6/7 139 

Acceptances  received,  6/8 123 

Acceptances  received,  6/9 8 

Telephone  reservations   16 

Complimentary  tickets 12 

TOTAL 319 

Total  actually  present 362 

Tlie  theory  of  this  is  that  although  with  the  unstamped 
return  card,  a  smaller  number  of  acceptances  will  be  received, 


338  METHODS  OF  ORGANIZATION  AND  OPERATION. 

the  proportion  of  cards  to  attendance  can  soon,  by  the  law  of 
average,  be  estimated  closely.  It  seems  to  be  generally  agreed 
that  stamped  cards  should  be  used  when  the  information  sought 
is  not  directly  in  the  individual's  interest.  In  either  case  the 
card,  of  course,  should  be  arranged  so  that  a  member  may  fill 
it  in  with  a  minimum  of  effort. 

Can  you  suggest  new  departures  in  filing  or  in  other  cleri- 
cal routine  likely  to  be  of  general  interest?  A  number  of  sys- 
tems were  reported,  which  vary  so,  and  yet  which  seem  to  be 
giving  equal  happiness  to  the  users,  that  I  do  not  believe  an  ex- 
tended discussion  of  them  would  be  feasible  or  of  particular 
value. 

Do  you  have  a  system  of  classifying  and  filing  for  easy 
reference,  valuable  articles  in  commercial  organizations,  ex- 
changes or  other  publications  which  come  to  you?  The  most 
feasible  plan  seems  to  be  to  have  the*secretary  or  his  assistant, 
mark  for  clipping,  articles  which  are  of  current  or  possible 
future  interest  to  the  organization.  Clippings  are  pasted  on 
cards  grouped  by  subjects,  so  that  all  printed  information  from 
exchanges  bearing  on  one  subject  will  be  found  in  one  place 
If  the  articles  cannot  be  cut  out,  the  publication  is  filed  away 
and  reference  to  the  article  is  filed  on  a  card.  In  this  way  a 
complete  information  file  on  certain  subjects  is  available.  It- 
is  a  common  practice  to  mail  important  articles  to  committee 
chairmen  when  it  bears  on  the  work  in  hand. 


CHAPTER  XVIII. 
Annual  Reports,  Their  Form  and  Value 

By  DON  E.  MOWRY 

The  organization  that  is  going  forward — making  progress 
— is  the  one  that  advertises.  The  organization  that  does  not 
advertise  is  marking  time.  Whether  it  be  an  industrial  enter- 
j)rise  or  a  commercial  organization,  the  same  rule,  based  upon 
a  practical  application  of  known  facts,  must  be  applied.  The 
organization  that  does  not  advertise,  by  keeping  abreast  of 
present-day  advertising  methods,  does  not  sell  itself  throiigh 
advanced  methods  of  publicity,  is  merely  marking  time. 

The  examination  of  313  annual  reports  of  commercial  or- 
ganizations, located  in  practically  every  State  in  the  Union,  in- 
cluding Canada  and  Alaska,  brings  to  light  the  somewhat 
startling  general  information  that  these  organizations  are  not 
keeping  pace  with  the  most  approved  methods  of  selling  to 
their  memberships  the  accomplishments  of  the  past  year,  as 
recorded  in  their  annual  reports.  Witli  but  few  exceptions, 
commercial  organizations  in  the  United  States  are  groping  in 
the  dark,  seeking  a  vehicle  which  mil  transport  them  quickly 
into  a  new  atmosphere  where  they  hope  to  be  able  to  produce  an 
annual  report  that  will  prove  to  be  the  exception  rather  than 
the  rule. 

It  may  be  true  that  the  cost  entailed  in  turning  out  a  book- 
let that  is  thoroughly  up-to-date,  has  a  selling  "punch"  and 
produces  the  desired  psychological  effect  upon  members  and 
prospective  members,  is  the  chief  factor  which  has  brought 
about  the  apparent  stagnant  condition.  And  yet,  the  obser- 
vations which  have  been  made  indicate  that  138  organizations 
are  publishing  annual  reports  in  booklet  form,  while  57  other 
organizations  have  turned  to  their  house  organs  as  the  vehicle 
through  which  the  annual  report  is  staged.  Some  organiza- 
tions have  either  temporarily  or  permanently  given  up  the  idea 
of  an  annual  report,  and  of  the  315  organizations  reporting,  45 
have  stated  that  they  do  not  publish  an  annual  report.  There 
thus  remain  but  75  organizations,  considered  in  the  study,  that 

339 


340  METHODS  OF  ORGANIZATION  AND  OPERATION. 

use  broadsides,  newspaper  items,  legal  forms,  leaflets,  typed 
statements  or  bound  books  as  their  medium  for  carrying  their 
annual  reports. 

Purpose  of  Reports 

What  is  the  annual  report  for?  Is  it  published,  no  matter 
what  its  form,  for  the  purpose  of  justifying  the  expenditures 
of  the  past  year,  to  record  past  history?  Or  is  it  published  for 
the  purpose  of  "selling"  the  present  membership  and  cutting 
into  the  potential  market — the  unsold  non-members? 

Do  your  members  want  to  see  a  galleiy  or  the  results? 
Should  pretty  pictures  of  your  city  be  included  in  your  annual 
report?  Should  your  vacant  assembly  rooms,  your  vacant  of- 
fices, your  street  scenes,  your  directors,  your  wholesale  district 
or  mediocre  cartoons  be  made  part  of  your  annual  report?  If 
so,  why? 

In  an  attempt  to  increase  the  size  of  the  report  or  else  to 
cause  the  member  to  look  for  his  name,  sixty-nine  organizations 
publish  a  classified  list  of  their  members  in  various  forms. 
Exhibit  number  six  illustrates  the  different  plans  followed  in 
this  regard.  It  is  an  encouraging  sign  to  note  that  246  organi- 
zations have  abandoned  this  policy. 

Financial  statements  are  usually  condensed  and  they  ap- 
pear in  many  publications  in  many  forms.  It  is  a  recognized 
practice  where  an  annual  report  is  published  to  print  a  financial 
statement.  And  yet  there  is  division  on  this  point.  Organiza- 
tions reporting  no  financial  statements  number  106  while  those 
that  report  financial  statements  number  156.  In  some  instances 
the  financial  statements  are  enclosed  as  a  leaflet  with  the  print- 
ed annual  report. 

Plans  of  organization  and  city  statistics  are  still  used  by 
a  number  of  organizations,  large  and  small.  Cities  that  are 
publishing  statistics  as  a  part  of  their  annual  reports  have  a 
peculiar  reason  for  so  doing  and  are  undoubtedly  justified. 

House  organs  are  used  by  many  organizations,  large  and 
small,  throughout  the  country.  Because  many  organizations 
depend  upon  their  weekly  or  monthly  publications  to  get  facts 
before  their  memberships,  they  favor  this  medium,  rather  than 
a  printed  booklet. 

A  Variety  of  Forms 

Some  annual  reports  in  booklet  form,  as  well  as  many  in 
the  house  organ  form,  have  their  activities  reported  by  commit- 


ANNUAL  REPORTS,  THEIR  FORM  AND  VALUE.       341 

tees,  by  the  president,  by  the  secretary,  and  in  memorandum 
form.  The  memorandum  form  is  that  form  which  merely  lists 
activities  in  a  short  direct  statement.  Committee  reports  are 
recorded  by  205  organizations  and  110  adopt  other  methods. 
The  president  and  secretary  make  the  reports  in  sixty-eight 
instances  while  about  thirty  organizations  follow  the  memo 
randum  form. 

The  railroad  time-table  style  is  much  in  favor  with  organi- 
zations that  print  booklets.  Out  of  a  total  of  138  publishing 
booklets,  fifty  have  adopted  this  form.  Standardization,  or 
uniformity,  is  practiced  by  a  number  of  organizations.  On  the 
other  hand,  other  organizations  adopt  a  different  form  for  each 
year.  Where  there  is  a  desire  to  cut  down  expenses  but  at  the 
same  time  issue  some  sort  of  an  annual  report,  leaflets  are  pub- 
lished. These  take  the  form  of  the  report  of  the  secretary  or 
are  simply  a  terse  statement  of  things  accomplished.  This  plan 
gives  the  membership  a  statement  at  hand  that  can  be  turned  to 
for  reference  at  any  time. 

A  few  secretaries  have  discovered  that  the  membership  is 
not  so  much  interested  in  what  has  been  done  as  they  are  in 
what  is  being  done  and  what  is  going  to  be  done.  Based  upon 
this  understanding  of  popular  fancy,  a  number  of  organizations 
are  publishing  either  with  or  separate  from  their  annual  re- 
ports a  program  of  work.  Some  few  commercial  organiza- 
tions give  to  the  members  outlines  of  the  work  which  they 
propose  to  do,  as  distinguished  from  reports  on  the  work  which 
has  already  been  done. 

To  accomplish  the  main  purpose,  quickening  the  interest 
of  our  members  and  gaining  new  memberships,  it  may  be  neces- 
sary to  abandon  old  customs  for  new  practices. 


CHAPTER  XIX. 
Methods  of  Recording  Minutes 

By  JAMES  A.  McKIBBEN 

The  by-laws  of  about  every  chamber  have  a  section  stating 
the  duties  of  the  secretary  of  the  organization ;  and  prominent 
in  that  statement  of  duties  is  that  ^'he  shall  keep  the  records  of 
the  chamber/'  or  words  to  that  effect. 

Is  it  possible  to  state  briefly — in  one  sentence,  for  instance 
— the  one  thing  to  be  kept  constantly  in  mind,  the  one  thing 
you  should  aim  to  accomplish  in  writing  records?  Always 
write  a  record  so  that  it  wdll  be  a  correct  statement  of  what  took 
place,  and  so  that  it  will  be  clear  and  intelligible  to  a  stranger 
reading  it  twenty  years  after  it  is  written. 

Is  not  that,  in  a  nutshell,  what  you  want  to  accomplish?  I 
imagine  nearly  all  of  you  will  agree  that  it  is;  and  yet  how 
many  of  us  write  that  kind  of  records?  How  many  of  us  are 
able  to  say  truthfully,  when  we  look  at  a  page  of  records  which 
we  have  written,  that  we  believe  a  man  twenty  years  from  now, 
knowing  nothing  of  current  history  and  with  no  knowledge 
of  the  facts  possessed  by  us,  would,  from  reading  that  page,  get 
a  correct,  clear  and  intelligent  understanding  of  what  trans- 
pired? How  many  of  us  are  even  able  to  detach  ourselves  from 
the  knowledge  of  events  and  circumstances  with  which  we  ai'e 
so  closely  connected  that  they  have  become  a  part  of  us,  and 
thereby  get  a  correct  perspective  of  what  we  have  written  from 
the  standpoint  of  a  stranger  twenty  years  from  now?  Of 
course  it  is  evident  that  you  must  be  able  to  do  that  in  order  to 
apply  the  rule  correctly.  If  you  are  able  to  do  that — really 
able  to  do  it — you  have  accomplished  a  good  deal,  and  have 
gone  a  long  way  toward  enabling  yourself  to  write  good  records. 

The  question  of  how  full  notes  he  should  take  is  one  upon 
which  there  may  well  be  a  wide  difference  of  opinion.  Those 
who  take  full  notes  will  probably  argue  that  you  cannot  make 
an  accurate  record  if  you  rely  on  your  memory  (which  is  true)  ; 
that  you  cannot  always  tell  in  advance  what  is  going  to  be  im- 
portant; and  that  the  only  safe  method  is  to  take  full  notes 
on  everything.    Many,  on  the  other  hand,  would  argue  that  if 

342 


METHODS  OF  RECORDING  MINUTES.  343 

a  man  takes  full  notes  of  everything-  his  mind  is  likely  to  be  so 
occupied  in  taking  notes  that  he  is  unable  to  discriminate  be- 
tween what  is  important  and  what  is  comparatively  trivial; 
that  much  of  the  work  spent  in  taking  full  notes  is  "lost  mo- 
tion ;"  that  the  result  of  taking  fuU  notes  of  everything  is  that 
when  a  man  goes  to  write  the  minutes  he  has  to  spend  much 
time  in  sifting  the  chaff  from  the  wheat,  and  that  much  better 
results  will  be  obtained  by  only  taking  notes  of  the  important 
things. 

Need  of  Discrimination 

Whether  or  not  you  believe  you  should  include  in  the  min- 
utes a  statement  of  the  positions  taken  by  the  various  directors 
and  members  of  committees — a  question  which  we  will  consider 
later — it  would  seem  as  if  one's  endeavor  should  be  to  discrimi- 
nate at  the  time  between  what  is  essential  and  what  is  com- 
paratively unessential,  and  that  you  should  take  notes  of  what 
is  essential  and  omit  what  is  non-essential. 

The  secretary  who  is  an  accomplished  shorthand  writer 
has  a  great  advantage  in  taking  notes,  for  he  can  with  ease 
take  the  exact  language  of  any  motion  or  suggestion  and,  if 
he  wishes  to  do  so,  take  pretty  full  notes  of  the  main  points 
in  a  discussion — and  in  the  exact  language  of  the  speaker — 
and  still  have  his  mind  comparatively  free  to  w^eigh  the  argu- 
ments made  and  to  take  part  intelligently  in  the  discussion,  if 
that  should  prove  to  be  advisable.  If  a  person  has  a  really  good 
knowledge  of  shorthand  and  has  used  it  so  long  that  it  has  be- 
come almost  second  nature  to  him,  he  can  take  very  full  notes 
if  he  so  desires  and  still  do  this. 

Let  me  say  a  word  of  caution,  however,  to  those  of  you  who 
write  shorthand.  The  very  ease  and  facility  with  which  you 
can  take  notes  makes  it  necessary  that  you  should  guard  zeal- 
ously against  taking  too  full  notes.  As  one  secretary  put  it  to 
the  questionaire,  "my  experience  has  taught  me  that  shorthand 
supplies  too  much.  There  is  a  spendthrift  waste  of  words  in 
almost  every  committee  meeting."  *  ♦  ♦  ♦  Complete 
schedules  of  summaries  of  matters  to  be  taken  up,  prepared  in 
advance  by  secretaries  whose  experience  has  shown  them  that, 
as  ex-President  Mead  puts  it,  "the  thorough  preparation  and 
digestion  of  the  material  to  be  considered  at  a  meeting,  the 
practice  of  having  reports  presented  in  writing,  and  of  having 
all  necessary  documents,  or  a  proper  digest  thereof,  attached  to 


344  METHODS  OF  011GANIZATI0;N  AND  OPERATION. 

the  papers,  assists  tremendously  in  simplifying  and  facilitating 
the  preparation  of  the  minutes.'^ 

Sending  Advance  Schedule 
The  practice  which  I  have  found,  to  be  most  advisable  is  to 
send  in  advance  of  the  meeting  to  each  director  or  to  each  mem- 
ber of  a  committee,  as  the  case  may  be,  a  schedule  or  summary 
giving  the  various  items  to  come  up,  numbered  in  the  order 
which  it  is  desirable  for  them  to  come  up.  Under  each  number 
there  should  be  a  brief,  but  carefully  prepared,  synopsis  of  the 
report  or  matter  to  be  presented  (a  synopsis  which  gives  you, 
in  brief  space,  the  real  "meat''  of  it)  ;  and  with  this  synopsis 
there  should  be  sent,  wherever  practicable,  a  copy  of  the  actual 
report  or  letter,  so  that  each  member  may  know  in  advance  just 
Avhat  is  coming  up  and  have  an  opportunity  to  read  it  and  de- 
cide what  he  thinks  should  be  done  with  reference  to  it.  I  find 
this  well  worth  while,  for  it  promotes  intelligent  discussion  and 
action  and  has  a  tendency  to  prevent  the  "spendthrift  waste  of 
words"  at  the  meeting  which  one  of  the  secretaries  referred  to ; 
and  therefore,  in  addition  to  its  other  advantages,  it  makes  the 
job  of  taking  notes  and  writing  a  clear  and  intelligible  record 
easier. 

And  it  is  worth  while  to  make  the  synopsis  of  each  report 
in  the  schedule  as  good  a  condensation  of  the  report  as  it  is 
possible  to  give  in  five  or  six  lines,  for  when  you  come  to  dictate 
the  records  you  will  then  have  ready  for  insertion  in  them  just 
exactly  what  you  want  and  can  avoid  even  the  necessity  of  re- 
dictating  any  of  them — except  the  first  few  words  of  each  num- 
ber. These  may  need  to  be  changed  because  of  the  fact  that 
your  record  should  be  a  story  of  Avhat  occurred  at  the  meeting, 
and  the  first  few  words  in  reference  to  each  item  should,  there- 
fore, vary  slightly  in  the  record  from  the  form  used  in  the 

schedule.  ,,,  .  .        ,     „. 

Writing  the  Minutes 

How  soon  after  a  meeting  adjourns  should  your  minutes 
be  written?  Of  the  186  questionaires  examined,  42.5  per  cent 
write  minutes  immediately  after  the  meeting  (or  the  first  thins: 
the  following  morning  in  the  case  of  an  evening  meeting)  ;  72 
(38.7  per  cent)  write  the  minutes  within  24  hours;  and  30 
(16.1)  per  cent)  said  that  they  write  them  "as  soon  as  pos- 
sible," without  indicating  how  soon  that  is.  Five  (2.7)  per 
cent)  apparently  write  their  records  whenever  it  is  convenient. 


METHODS  OF  RECORDING  MINUTES.  345 

Nearly  all  the  secretaries,  as  you  might  expect,  expressed 
the  opinion  that  the  minutes  should  be  ^intten  "just  as  soon 
as  possible  after  the  meeting."  The  reasons  given  were  essen- 
tially the  same,  and  Avere,  in  substance,  that  whether  you  take 
full  notes  and  "boil  them  down"  in  writing  out  your  records, 
or  take  brief  notes,  or,  indeed,  any  kind  of  notes,  you  get  the 
best  results  by  using  your  recollection  to  supplement  the  notes 
— in  cutting  down  your  notes  if  they  are  too  full,  in  supple- 
menting the  notes  if  they  are  too  brief.  In  addition,  what- 
ever kind  of  notes  you  take  you  can  much  better  apply  while 
your  memory  of  what  took  place  is  fresh,  our  test  of  whether 
what  you  write  is  correct  and  would  be  clear  and  intelligible 
to  a  stranger. 

How  much  of  the  discussion  should  be  included  in  the 
minutes?  The  answers  to  the  questionaire  show  that  21  (11.2 
per  cent)  embody  in  the  minutes  a  pretty  complete  condensa- 
tion of  discussions  at  the  meetings;  42  (22.5  per  cent)  embody 
a  brief  synopsis  of  the  discussions;  that  15  (7.9  per  cent)  in- 
clude nothing  but  a  bare  record  of  action  taken,  and  86  (46.2 
per  cent)  included  in  addition  to  a  record  of  the  action  taken 
only  the  most  important  suggestions  made  in  discussions. 

Most  secretaries  express  the  opinion  that  records  should 
be  made  as  brief  as  is  consistent  with  giving  a  correct,  clear 
and  intelligible  statement  of  what  transpired.  Most  of  them 
think  this  best  accomplished  by  simply  stating  the  action  taken, 
and  where  there  was  discussion,  by  saying,  "after  discussion  it 
was  voted,"  or  words  to  that  effect;  except  where  the  matter  is 
of  especial  i«iportance  or  where  there  is  a  difference  of  opin- 
ion, in  which  case  you  should  include  a  brief  synopsis  of  the 
points  made  in  the  discussion.  The  people  w^ho  believe  in  in- 
cluding in  the  records  a  full  synopsis  of  discussion,  mostly 
justify  this  on  the  ground  that,  as  one  secretary  expressed  it, 
"It  is  not  only  desirable  to  have  a  complete  record,  but  of  the 
reasons  which  influenced  the  decision." 

Brevity  Most  Desirable 

A  few — a  very  few — secretaries  laid  emphasis  on  the  desir- 
ability of  having  a  record  of  just  where  each  director  stood  on 
a  matter.  May  I  be  pardoned  for  saying  that  I  think  such  a 
point  of  view  veiy  much  out  of  place  in  chamber  of  commerce 
work?    It  may  be  a  proper  and  fitting  part  of  debating  soci- 


346  METHODS  OF  ORGANIZATION  AND  OPERATION. 

eties,  political  conventions,  and  such  affairs;  but  it  has  no 
proper  place  in  a  chamber  of  commerce.  What  a  chamber 
should  be  interested  in,  and  the  only  thing  it  should  be  inter- 
ested in,  is  arriving  at  the  wisest  possible  decision,  and  how  to 
get  done  the  thing  which  it  is  decided  should  be  done.  Whether 
John  Jones  took  a  position  last  month  or  last  year  which  is 
inconsistent  with  a  position  taken  by  him  now  is  a  matter  of 
no  importance  whatever  to  the  chamber.  What  if  he  has 
changed  his  mind?  Fools  are  the  only  people  who  never  change 
their  minds — and  they  would  if  they  knew  enough.  And,  any- 
way, you  are  not  writing  the  life  and  history  of  John  Jones  and 
Henry  Smith  and  others.  You  are  making  a  record  of  what 
decisions  were  made  by  committees  and  directors  in  reference 
to  the  various  matters  which  came  before  them. 

Synopsical  Reports 

There  are  some  secretaries,  and  some  good  ones,  who  think 
if  important  that  a  good  synopsis  of  debates  should,  in  almost 
all  cases,  be  included.  I  think  there  is  a  good  deal  of  truth, 
however,  in  the  remark  of  one  secretary  that  "nobody  except 
the  secretary  ever  reads  any  part  of  the  record  except  the  ac- 
tion taken;"  and  I  believe  that  the  secretaries  who  make  it  a 
practice  to  include  pretty  full  synopses  of  debates  are  really 
either  doing  it  to  gratify  their  personal  satisfaction  or  because 
making  a  complete  record  of  everything  that  happened  has  be- 
come with  them  a  fad  (a  fad,  you  know,  is  nothing  but  a  good 
idea  carried  too  far),  and  that  they  are  fooling  themselves  in 
thinking  that  they  are  doing  it  in  order  to  have  the  best  min- 
utes possible.  One  secretary  remarked  that  "when  one  recalls 
that  the  story  of  the  creation  was  written  in  about  six  hundred 
words,  it  is  apparent  that  very  important  meetings  can  be  re- 
ported in  comparatively  small  space." 

Besides,  as  Ex-President  Strong  in  his  answer  points  out : 
"Generally  speaking,  it  is  dangerous  to  endeavor  to  quote  indi- 
viduals, particularly  when  they  are  speaking  in  opposition  to 
the  position  taken  by  the  majority  of  the  committee.  A  bet- 
ter way  is  to  give  the  thing  so  clearly  in  substance  that  it  can- 
not be  assumed  to  be  a  quotation.  For  instance,  Mr.  A.  op- 
posed the  motion  to  endorse  the  building  of  the  concrete  bridge 
on  the  ground  that  concrete  for  purposes  of  a  bridge,  with  a 
climate  with  widely  varying  temperatures,  was  not  regarded  as 


METHODS  OF  RECORDING  MINUTES.  347 

altogether  feasible,  and  also  on  the  ground  that  the  city  was  not 
justified  at  present  in  spending  as  much  money  as  would  be 
required  for  a  concrete  structure,  when  the  growth  of  the  city 
might  require,  after  a  generation  or  two,  the  building  of  a  struc- 
ture of  larger  capacity.  Perhaps  Mr.  A.  took  fifteen  minutes 
in  which  to  present  his  argument ;  but  this  gives  the  gist  of  his 
argument  in  no  uncertain  terms,  without  endeavoring  to  quote 
him." 

Secretary  Must  Efface  Himself 

The  commercial  secretary  should  keep  himself  out  of  the 
minutes  as  much  as  possible.  He  should  put  himself  into  the  rec- 
ord only  when  necessary  because  he  made  a  report  or  something ; 
and  he  should  always  write  the  record  in  the  third  person — 
saying,  when  referring  to  matters,  that  "the  secretary  reported 
that,"  etc.  The  use  of  the  word  "I"  in  a  record  is  an  unpardon- 
able exhibition  of  egotism  and  a  manifestation  of  the  secre- 
tary's inability  to  detach  himself  sufficiently  from  the  things 
which  have  transpired  to  get  a  correct  perspective  from  the 
standpoint  of  a  stranger  twenty  years  from  now;  and  no  man 
can  wTite  ideal  records  unless  he  does  that. 

It  is  no  crime  to  use  correct  English  in  writing  records. 
A  record  is  not  made  any  more  correct  or  clear  or  intelligible 
by  being  written  in  jerky,  disconnected,  or  fragmentary^  and  in- 
complete sentences.  As  President  Guild  pointed  out,  "Nice, 
clean-cut,  forceful  minutes  are  just  as  much  a  joy  as  a  nicely 
worded  and  typewritten  letter." 

Character  of  Record  Books 

The  first  question  under  this  portion  of  the  questionaire 
was  intended  to  develop  the  form  of  record  book  used.  About 
150  answered  this  question.  One  hundred  and  six  (71  per 
cent)  of  the  secretaries  use  some  form  of  loose  leaf  book;  and 
of  this  number  about  one-fifth  have  the  loose  leaves  permanent- 
ly bound  at  the  end  of  the  year. 

The  first  paragraph  should  contain  a  statement  of  where 
and  at  what  time  the  meeting  was  held,  and  who  were  present. 

If  the  matter  in  question  is  a  report  and  it  is  not  in  writ- 
ing, the  statement  of  the  matter  in  the  minutes  must,  of  course, 
be  sufficiently  complete  to  give  all  necessary  information  in 
reference  to  it.  If  it  is  a  written  report,  I  think  the  best  prac- 
tice is  to  make  the  best  condensation  you  can  in  five  or  six 


348  METHODS  OF  ORGANIZATION  AND  OPERATION. 

lines,  and  then  say  "(for  copy  of  report  see  appendix  ^A'  an- 
nexed hereto)'' — and  annex  the  original  report.  As  was  point- 
ed out  by  a  number  of  secretaries,  the  minutes  are  more  per- 
manent and  lasting  than  your  files  or  anything  else.  The 
safest  place  to  put  reports  is  with  the  minutes  of  the  body 
which  took  final  action,  (i.  e.,  the  directors)  ;  and  they  are 
also  more  easily  and  quickly  found  there  than  if  distributed 
through  your  files.  Your  files,  to  be  sure,  should  also  contain 
a  copy  of  the  report ;  but  the  best  place  for  the  original  is  with 
the  directors'  minutes.  In  addition  to  that  being  the  safest 
place  in  which  you  can  put  your  reports,  this  method  also  has 
a  number  of  other  advantages.  It  saves  time.  If  you  make  the 
report  an  appendix  you  can  make  the  statement  in  the  minutes 
in  reference  to  the  report  much  briefer  than  if  it  were  not  read- 
ily accessible.  It  also  gives  fuller  information  than  you  other- 
wise possibly  could  obtain.  The  minutes  give  a  very  brief 
condensation  of  the  report,  and  any  one  wanting  fuller  infor 
mation  can  readily  consult  the  report  itself,  in  the  appendix. 
It  makes  your  record  of  the  meeting  itself  less  bulky,  in  that 
much  of  what  you  otherwise  would  have  to  put  in  the  minutes 
is  contained  in  appendices ;  and,  further,  it  facilitates  the  find- 
ing of  any  matter  in  the  minutes,  for  the  action  taken  in  refer- 
ence to  the  matter  is  not  snowed  under  and  covered  up  by  a  lot 
of  language  which  can  better  be  made  an  appendix. 

If  the  matter  referred  to  is  a  letter  or  anything  else,  what 
is  said  above  applies  equally.  If  it  is  of  enough  importance, 
the  original  should  be  made  an  appendix  to  the  record  of  your 
directors'  meeting;  and  if  it  is  not  of  enough  importance  for 
that,  the  record  itself  should  contain  a  sufficiently  full  state- 
ment in  reference  to  it  to  give  our  mythical  stranger  who  is 
going  to  look  at  the  record  twenty  years  from  now  a  clear  and 
intelligent  and  correct  understanding  of  what  the  matter  was. 

Having  put  into  the  record  itself  so  much  as  was  necessary, 
using  the  original  document  as  an  appendix,  the  record  should 
then  state  the  action  taken.  If  there  was  a  discussion  of  an 
ordinary  character,  but  of  no  special  importance^  it  is  well  to 
refer  to  the  fact  that  there  was  discussion  by  saying  "after  dis- 
cussion, it  was  voted,"  etc.,  or  "it  was  voted,  after  discussion, 
that,"  etc.  If  the  discussion  was  of  an  important  character,  a 
very  brief  statement  of  the  main  points  brought  out  in  the  dis- 
cussion on  the  one  side  and  on  the  other  should  be  included. 


METHODS  OF  RECORDING  MINUTES.  349 

Headings  or  Side  Notes 

Either  headings  or  side  notes  should  be  used  to  facilitate 
finding  things.  AVhether  or  not  you  use  an  index,  it  seems  to 
me  advisable  to  have  each  new  subject  labeled  either  by  side 
notes  or  a  heading.  Whether  you  use  the  one  or  the  other  is  a 
matter  of  choice.  Personally,  I  prefer  the  headings.  They  are 
more  quickly  and  easily  written ;  they  seem  to  me  about  as  good 
a  guide  as  the  side  notes;  and  you  can  use  more  words  in  the 
headings  than  in  the  side  notes,  and  thus  give  a  clearer  idea  of 
what  the  paragraph  is  about. 

And  the  last  paragraph  of  your  minutes  of  a  meeting  should 
contain  a  statement  of  when  the  committee  adjourned  and  when 
its  next  meeting  is  to  be  held. 

If  you  wish  a  chronological  file  of  minutes  in  one  book,  for 
use  during  the  current  year,  take  the  first  carbon  copy  and  have 
it  punched  in  the  ordinary  way  and  keep  them  in  the  kind  of 
a  binder  which  suits  your  fancy.  There  are  hundreds  of  them 
offered  for  sale,  and  at  reasonable  prices. 

Whether  you  keep  a  set  of  carbon  copies  of  the  minutes  ar- 
ranged chronologically  or  not,  get  a  simple  folder  for  the  min- 
utes of  each  committee  and,  as  the  minutes  are  written  out,  put 
in  that  committee's  folder  all  of  the  minutes  of  its  meetings  ar- 
ranged chronologically.  For  this  purpose  an  ordinary  cheap 
paper  folder  with  a  "one-inch  expansion,"  such  as  is  used  in 
vertical  files,  can  be  used;  but  you  will  find  it  a  convenience 
to  use  a  "press  board  expansion  folder''  with  stiff  sides,  such  as 
all  of  the  vertical  filing  companies  have  for  sale — and  they  are 
not  very  costly.  These  should  be  kept  in  a  vertical  filing  cabi- 
net, alphabetically  arranged  by  committees,  so  that  you  can 
instantly  put  your  hand  on  the  file  of  minutes  of  any  particular 
committee;  and  you  should  have  the  file  of  minutes  for  the 
current  year  at  every  meeting  of  the  committee.  You  will  find 
this  a  great  convenience  and  a  great  time  saver  if  you  want  to 
look  back  in  the  minutes  of  any  committee  and  find  something. 
For  current  use  no  one  or  two  books  of  records  are  nearly  as 
convenient  or  serviceable,  and  if  you  will  try  this  plan  I  think 
you  will  find  little  and  probably  no  occasion  to  refer  to  your 
chronological  set  of  minutes  during  the.  current  year.  Of 
course,  your  official  and  permanent  minuted  should  all  be  in 
one  book. 


350  METHODS  OF  ORGANIZATION  AND  OPERATION. 

Records  of  Members,  Payment  of  Dues 

By  ROBERT  B.  BEACH 

A  system  of  records  and  accounts  is  one  of  those  things  you 
have  to  have,  whether  you  want  it  or  not.  Any  system  will 
work  with  the  right  man  to  operate  it,  but  a  good  system  works 
easiest  and  is  least  likely  to  go  wrong.  The  less  you  have  to 
think  about  it,  the  better  it  is.  It  will  never  get  you  a  member 
but  it  may  help  you  to  keep  a  good  many  members.  It  may 
never  give  you  anything  to  brag  about,  but  it  may  save  you 
something  to  apologize  for. 

A  good  bookkeeper  is  usually  a  poor  secretary.  A  good 
secretary  is  usually  a  poor  bookkeeper.  The  more  important, 
therefore,  that  we,  as  secretaries,  see  to  it  that  the  system  we 
employ  is  simple  and  effective. 

When  pressed  into  service  to  present  this  subject,  I  wired  a 
dozen  secretaries  for  copies  of  their  forms.  In  looking  them 
over  you  will  be  struck  by  two  facts:  First,  that  no  two  are 
alike;  second,  that  there  is,  nevertheless,  a  kind  of  family  re- 
semblance. 

Immediately  you  ask,  "Why  not  standardize  and  arrive  at 
a  uniform  system  suitable  for  all?"  Can  this  be  done?  That 
depends.  There  are  certain  conditions  in  our  several  cham- 
bers that  are  fundamentally  different;  others  that  are  funda- 
mentally the  same.    Points  of  difference  are: 

I.  The  membership  year.  Some  date  from  elanuary  1st. 
Some  from  January  1st  and  July  1st.  Some  from  more  fre- 
quent periods.  Some  have  twenty-feur,  the  first  and  fifteenth 
of  each  month.  II.  Payment  of  dues — annually  in  advance, 
quarterly,  monthly.  III.  Distribution  of  expense — whether  only 
by  such  classification  as  printing,  postage,  salaries  and  the 
like,  or  by  departments  and  committees  covered  in  a  budget 
system  with  the  other  classifications  under  them. 

That  is  not  all,  of  course.  Every  chamber  has  some  char- 
acteristic feature.  In  our  own  case,  we  make  it  a  rule  not  to 
spend  this  year  the  money  we  earn  next  year.  For  example, 
if  a  membership  year  dates  from  January  15th,  twenty-three 
twenty-fourths  of  the  dues  are  available  this  year  and  one 
twenty-fourth  is  held  for  next  year's  requirements. 

But  against  these  detailed  differences  there  are  a  host  of 
points  of  similarity. 


RECORDS  OF  MEMBERS,  PAYMENT  OF  DUES.  351 

I.  We  are  all  in  the  same  business.  II.  Our  sources  of 
revenue  are  the  same.  III.  The  problems  of  collection  are  com- 
mon. IV.  Our  expenses  vary  in  volume  but  conform  in  char- 
acter. 

What  Is  To  Be  Accomplished? 

Now  what  are  the  things  we  want  to  accomplish  in  our 
records  of  members,  dues  and  disbursements?  Most  important 
Ave  want  to  know  at  any  minute  just  who  our  members  are. 
Not  the  list  as  it  stood  last  week,  or  as  it  stood  last  night,  but 
the  list  as  it  stands  right  now.  Next  we  want  to  know  whose 
dues  are  paid,  whose  dues  are  due  and  whose  dues  are  in  ar- 
rears. Next  in  order  we  want  to  know  what  money  we  have 
spent  and  what  it  went  for.  And,  finally,  we  want  to  know 
what  money  we  have  available  to  spend  for  work  in  hand. 

Let  me  explain  one  simple  method  of  procedure  with  which 
I  happen  to  be  familiar.  When  a  member  is  elected  a  record 
card  is  made  out.  It  is  small — the  smallest  size  of  index  card. 
It  gives  the  name  and  address  and  classification.  Under  that 
are  spaces  for  recording  payment  of  dues  from  year  to  year. 
The  back  is  blank.  It  is  used  for  special  memoranda  if  re- 
quired. This  card  is  the  complete  record  of  that  member's 
status  of  membership.  If  he  resigns,  that  is  noted.  If  rein- 
stated, that  is  noted.  When,  for  any  reason,  the  membership 
terminates  the  card  is  removed  and  placed  in  an  ex-member 
file.  Moreover,  it  is  the  one  and  only  official  record  with  which 
all  other  records  are  checked. 

It  is  a  straight  alphabetical  record  and  it  never  leaves 
the  inner  office  of  the  accounting  department.  When  not  in 
use,  it  is  locked  in  a  fireproof  vault.     So  much  for  the  card. 

Next  there  is  made  out  a  bill  for  dues^ — "invoice"  they  call 
it  in  bookkeeping  language.  It  reads  "Smith  Manufacturing 
Company,"  dues  from  date  to  date  and  the  amount.  Of  this 
invoice  there  are  two  carbons. 

Take  note  of  those  carbons,  they  are  important.  Both  are 
punched  for  loose  leaf  binders.  One  goes  into  the  billing  tickler 
made  up  of  similar  carbons  of  the  entire  memberships,  classi- 
fied alphabetically  under  billing  dates,  of  which  there  are 
twenty-four.  Suppose  the  membership  starts  today.  The  car- 
bon is  filed  under  November  15th  ( (nearest  billing  date).  One 
year  hence  the  billing  clerk  refers  to  the  November  15th  car- 
bons and  bills  for  the  following  year.     The  exact  language  is 


352  MEXTHODS  OF  ORGANIZATION  AND  OPERATION. 

there  on  the  carbon,  all  he  has  to  change  is  the  year.  This 
happens  two  years  hence,  three  years  hence,  and  so  on  as  long- 
as  the  membership  stands. 

Now  the  other  carbon — you  recall  there  were  two.  The 
second  goes  into  a  binder  called  accounts  receivable,  filed  alpha- 
betically, where  it  stays  until  paid  in  due  course.  Then  it  is 
stamped  "paid"  and  transferred  to  a  paid  accounts  binder  and 
kept  as  a  permanent  record. 

Duplicate  billing  is  done  from  the  accounts  receivable 
binder.  Nothing  goes  into  the  journal — for  there  have  to  be 
journals,  cash  books  and  ledgers  wherever  there  are  accounts^— 
except  the  total  amount  of  the  billing  for  a  given  date. 

To  recapitulate — one  card — or  it  may  be  a  compact  loose 
leaf  page  if  preferred — a  complete  permanent  record  upon 
AVhich  payments  are  noted  as  made;  a  bill  with  two  carbons, 
the  bill  going  to  the  member,  one  carbon  to  the  tickler  and  one 
to  the  accounts  receivable  binder  and  ultimately  to  the  ac- 
counts paid  binder.  Total  amounts  are  recorded  on  the  regu- 
lar books.  Simple — it  gives  an  instantaneous  record,  always 
up  to  the  minute  and  provides  an  effective  means  of  following 
up  the  account. 

System  of  Membership  Accounts 

Going  over  the  exhibit  I  have  drawn  certain  principles 
which,  if  not  self-evident,  nevertheless,  seem  to  be  reflected  in 
well-appointed  systems  of  chamber  accounts.    Here  they  are : 

I.  The  best  membership  record  is  a  permanent  alphabeti- 
cal card  or  loose  leaf  index  upon  which  all  essential  facts,  in- 
cluding payment  of  dues,  is  recorded.  This  cannot  be  used 
to  bill  from  unless  filed  by  billing  dates  and  that  would  destroy 
its  usefulness  as  an  instantaneous  record. 

II.  It  is  a  good  thing  to  have  your  billing  dates  distribu- 
ted throughout  the  year.  This  avoids  a  peak  load.  Your  fol- 
low-up system  by  letter  and  call,  if  need  be,  can  be  worked  con- 
sistently all  the  year  round.  The  machinery  works  all  the  time. 
That  makes  for  efficiency. 

III.  Keep  as  much  detail  as  possible  off  your  controlling 
ledger  and  other  books  of  account.  Keep  the  detail  in  auxiliary 
records,  as  close  as  possible  to  the  source  of  information.  For 
instance,  distribution  of  expense  can  be  itemized  in  a  voucher 
which,  when  returned,  is  kept  as  a  permanent  record. 


FORMS,  RECORDS  AND  FINANCIAL  ACCOUNTS.  353 

IV.  A  budget  system  is  most  important.  It  leads  to  fore- 
handedness  and  a  scientific  planning  of  your  work.  It  must 
be  based  on  a  highly  conservative  estimate  of  the  resources  of 
the  coming  year,  derived  from  the  experience  of  the  previous 
years,  leaving  what  is  known  in  financial  circles  as  a  "margin 
of  safety." 

V.  All  expenditures  should  be  authorized  by  requisition 
signed  by  the  secretary.  Then  you  have  centralized  authority 
and  undivided  responsibility. 

VI.  There  must  be  an  intelligent  record  of  the  distribu- 
tion of  expense,  which  upon  analysis  from  time  to  time  will 
yield  instructive  information  for  future  guidance. 

The  error  that  you  especially  want  to  guard  against  in  the 
operation  of  any  system  you  employ  is  the  unpardonable  sin 
of  sending  a  bill  to  the  member  who  has  paid  his  dues.  The 
object  you  especially  want  to  accomplish  is  timeliness.  A  rec- 
ord, however  accurate  of  conditions  as  they  w^ere  last  week  or 
last  month,  is  of  little  practical  value,  but  the  record  of  to-day 
is  not  merely  useful,  it's  inspiring. 


Forms,  Records  and  Financial  Accounts 

COMMITTEE  REPORT  ON  STANDARDIZED  FORMS* 

Out  of  the  varied  methods  Avhich  our  chambers  of  com- 
merce use  for  the  keeping  of  membership  records  and  financial 
accounts — no  tw^o  alike  either  in  general  character  of  the  sys- 
tems or  in  the  forms  that  are  employed — your  committee,  obedi- 
ent to  instructions,  has  selected  that  procedure  which  seems 
simplest  and  best.  This  procedure  it  offers  as  a  basis  of  stand- 
ardization, with  such  adaptations  as  local  conditions  may  re- 
quire. 

The  study  is  based  upon  a  rather  full  list  of  questions  ad- 
dressed to  the  commercial  secretaries  comprising  the  member- 
ship of  the  N.  A.  G.  O.  S.,  to  which  letters  of  inquiry  there 
Avere  131  replies,  practically  all  accompanied  by  copies  of 
forms.  Certain  of  these  forms  have  been  collected  in  exhibits 
and  are  submitted  as  a  corollary  of  this  report. 

♦The  committee  consisted  of  R.  B.  Beach,  Chairman;  lA.  V.  Snell,  E.  H. 
Krueger,  John  M.  Guild,  H.  H.  Mathonet,  A.  J.  Miller  and  H.  J.  Wollenb?rg. 


854  METHODS  OF  ORGANIZATION  AND  OPERATION. 

To  present  its  message  directly  and  clearly  the  committee 
makes  its  report  in  tliree  parts.  In  part  one  are  given  the  forms 
recommended,  briefl}^  described  and  with  little  argument.  Ex- 
planations are  supplied  in  part  two,  with  a  limited  discussion 
of  considerations  coming  within  the  committee's  investigation. 
Part  three  summarizes  the  responses  to  inquiries  addressed  by 
the  committee  to  members  of  the  N.  A.  C.  O.  S.  with  respect  to 
important  features  of  current  accouiiting  systems. 

PART  I 

The  forms  recommended  by  your  committee  for  simplicity, 
accuracy  and  dependable  results — subject  to  ^^interpretations" 
that  may  appear  in  part  two — are  given  below : 
1.     Official  Membership  Record. 

The  form  recommended  is  5  by  8  inches,  either  loose  leaf 
or  card,  the  loose-leaf  binder  being  preferable  where  not  to 
exceed  six  hundred  accounts  are  kept  in  a  binder. 

This  form  should  contain  the  following  information : 


BLANK  CHAMBffl 

MEMBERSHIP 

OF  COMAieRCe 

LEDGER 

NAMF 

Oitee/fc/*</               NofMembfi-i/fips 

ADDRE 

SS 

1 

^erminitQd 

'iemarks 

DATE 

DR. 

DR.BAL 

CR. 

CR.  BAL.| 

DATE 

DR. 

OR  BAL. 

CR 

CR.BAL. 

1 

The  ruling  is  regular  double-entry  form.  Only  one  side  of 
the  paper  should  be  used.  Two  debit  and  two  credit  columns 
are  provided.  While  the  extra  column  is  not  indispensable  for 
purpose  indicated,  it  is  especially  valuable  where  chambers 
have  club  features,  permitting  separation  of  dues  from  club 


FORMS,  RECORDS  AND  FINANCIAL  ACCOUNTS. 


355 


accounts.  In  the  case  of  large  organizations  which  distribute 
dues  by  function  or  periods,  the  columns  are  available  for  that 
purpose. 

2.     Continuous  Record  of  Members. 

This  should  be  a  bound  record,  the  pages"  containing  fifty 
lines  on  a  side.    The  headings  siiould  be 


BLAAIK    CHA/^BER  Of    CO/^/^ERCE 

MEMBERSHIP  RECORD 

SERIAL  NO 
00 

NAME 

DATt 
ELECTED 

DUES 

TERI^INATION                | 

DATE 

RENAAR.KS 

01 

02 

03 

04 

05 

N22 

The  name  of  each  member  should  be  entered  in  the  order 
of  election  and  numbered  consecutively. 

No  index  is  required,  for  this  is  provided  by  the  official 
record,  which  giA^es  serial  number.     (See  part  2.) 

3.     Personnel  Record  Form. 

This  record  should  be  kept  on  cards  4  by  6  inches  in  size. 
It  is  for  general  reference  (as  the  official  record  should  not  be 
used  for  miscellaneous  reference)  and  may  be  prepared  in  three 
ways,  the  distinction  indicated  by  color,  as  follows: 

White — For  the  general  membership  list,  the  white  card 
signifying  that  the  name  on  top  line  (whether  firm  or  indi- 
vidual) is  the  name  in  which  the  membership  officially  stands. 

Blue — For  cross-indexing  firms  and  individuals,  the  blue 
card  signifying  that  the  name  on  the  top  line  (whether  firm  or 
individual)  is  not  the  name  in  which  the  membership  official- 
ly stands,  that  being  given  in  the  second  line. 

Buff — For  business  directory,  filed  by  character  of  busi- 
ness. 

The  information  to  be  recorded  on  the  blue  and  white  cards 
is  similar,  each  having  two  forms,  (a)  firm  and  (b)  individual., 
as  follows : 


356 


METHODS  OF  ORGANIZATION  AND  OPERATION. 


PERSONNEL 

CARD- 

-FIRM 

F\RM  NAME 

ADDR.E3S 

PHONE 

BUSINESS 

INDIVIDUALS 

POSITION 

HELD 

REMARKS 

BLANK  CHAMBER  OF  COMMERCE 

N93A 


PERSONNEL  CARD 

-INDIVIDUAL 

NAME 

INTERE5TED     IN 

FIRM 

BUSINESS  ADDRESS 

RESIDENCE  ADDRESS 

COMMITTEE   SERVICE 

B.  PHONE                R.  PHONE 

^• 

NATURE  OF  BUSINESS 

POSITION    HELD 

OTHER    ORGANIZATIONS 

. 

BLANK  CHAMBER  OF  COMMERCE 

N9  3B. 


These  cards  are  filed  by  firms  and  by  indmduals,  each  serv- 
ing as  a  key  to  the  other.  The  business  record  form  (buff)  con- 
tains : 


FORMS,  RECORDS  AND  FINANCIAL  ACCOUNTS. 


357 


PERSONNEL  CAR.D 

-BUSINESS 

BUSINESS 

DESCRIPTION  OF  BUSINESS 

FIRM  NAME 

ADDRESS 

PHONE 

REPRESENTATIVES 

MAKES    OR  SELLS 

BLANK  CHAMBER  OF  COMMERCE 

N9  3C 
4.     Bills. 

Wording  of  the  bill  is  determined  somewhat  by  the  by- 
laws.   A  good  form  is  given  below : 


(front) 


INVOICE 

Blank  Chamber  of  Commerce 

Chamber  of  Commerce  Builc/in^ 

City.  5tdte 


Amount  $_ 


Details  of  Invoice 


(back) 


MEMORANDU^ 


Blank  Chamber  of  Commerce 

Chimbfr  o/  Co/nmprcf  Bui/din^ 

City  St  a/9 


.19- 


Amount  % 


■-a™--; 

■^.. 

FROHT  BACH 


358 


METHODS  OF  ORGANIZATION  AND  OPERATION. 


This  form  is  designed  to  fold  and  insert  in  "window  en- 
velope.'' The  arrangement  permits  the  Avriting  of  invoice  and 
memorandum  with  one  operation,  using  carbon. 

The  practice  of  sending  receipts  (except  where  currency 
is  used)  is  useless  and  wasteful  and  has  been  discontinued 
generally  by  modern  mercantile  establishments. 

5.     Budget  Form. 

We  recommend  that  chambers  generally  adopt  the  budget 
system.  In  fact,  Ave  do  not  see  how  organizations  can  be  fully 
successful  and  efficient  Avithout  the  use  of  a  predetermined 
budget.  A  simple  form  of  budget,  which  may  be  written  on  a 
plain  siheet,  is  given  below : 


BLANK  CHAMBER  OF  COMMERCE 

EstiTTidte  of  Budqei  Requirements  for  1  Q2.0 
Total  Expend liures  /9I9  / 
F.-^fimafpf/  Reur-^nuP  IQPO.f 

Deperimeni  (orCommiffee) 

Appropnafion 

Expenditures 

Requested 

1  92.0 

Appropriat/on 

Hsodoiiririprs 

133.^0 

6  0 

//990 

oo 

/  6-0  0  0 

CO 

C.iyir. 

-397/ 

CO 

^3Z0 

00 

50  oo 

oo 

1  nrj ij.'^iK  iri  1 

5'SS'J. 

00 

ssji' 

00 

1 OOOO 

00 

Trrirle 

3V// 

00 

ZOOO 

00 

^000 

00 

Piihlirihi 

¥262 

00 

^37/ 

00 

7^00 

oo 

Ffr 

N9  5 

The  foregoing  is  a  summary  sheet,  giving  the  totals  for 
departments  (or  committees).  It  may  be  supplemented  by  de 
tailed  statements  from  each  department,  with  similar  columns 
of  figures,  the  first  column  giving  the  items  into  w^hich  the  de- 
partment (or  committee)  expense  is  divided. 

Inasmuch  as  budget-making  is  the  subject  of  a  special 
paper  to  be  presented  to  the  Fifth  Annual  Convention  of  the 
N.  A.  C.  O.  S.,  the  Committee  on  Standardized  Forms  includes 
it  as  a  feature  of  the  general  system  of  accounts  without  de- 
tailed recommendations. 


FORMS,  RECORDS  AND  FINANCIAL  ACCOUNTS. 


359 


f).     Voucher. 

Good  accounting  practice  prescribes  a  voucher  made  in 
duplicate,  the  original  of  Avhich  is  a  statement  of  account  per- 
forated at  the  point  of  connection  with  the  check  paper.  The 
other  half  is  the  duplicate  copy,  to  which  the  supporting  docu- 
ments are  firmly  and  j^ermanently  affixed.  In  a  rigidly  adhered 
to  system  the  vouchers  are  numbered  and  passed  through  a 
voucher  record,  where  they  are  entered  in  numerical  order, 
and  when  finally  pas>sed  for  payment  the  checks  are  given  a 
number  and  are  again  entered  in  the  cash  book  as  a  credit  to 
the  bank  and  a  debit  to  vouchers  payable.  The  difference  be- 
tween the  checks  issued  and  the  vouchers  payable  is  the  ac- 
counts payable  of  the  institution. 

There  is  no  question  that  this  is  the  proper  system  to  use 
in  large  mercantile  institutions  w  hich  make  a  large  percentag3 
of  their  purchases  on  an  extended  credit  basis.  Since  practical- 
ly all  chambers  of  commerce  are  operating  on  a  cash  basis  it 
would  seem  unnecessary  to  make  the  duplicate  record.  We, 
therefore,  recommend  a  voucher  incorporating  on  its  face  the 


"*- 

v^  1 

Q,   5;    O 

1 

.    >§  -^  ^ 

Q< 

1         • 

C;    ^    ^     vo 

C> 

l;5|;5 

"<; 

^  ^  ^  % 
|>^^ 

^•^  V)§ 

BLANK  CHAMBER    OF  COMMERCE 

sO                                                                   Che^mSer-    c/*  Cor»tner-ce    &/c/y. 

o.      To  Blank  Bank                                                         ^ 

at  I/,  State 

Pau 

Dnlhy,^    f 

°cf 

To  the  orc/er  c 

r-                                                                           Tf}e  B/ank  Ctiamber  of  Commerce 

/?./ 

■^                                          /re^surpr 

(mnfprs/^ffflf/  fl// 

^         y                                      Secretary 

360 


METHODS  OF  ORGANIZATION  AND  OPERATION. 


check  and  on  the  back  the  distribution  of  the  charge;  that  it 
be  recorded  direct  in  a  column  cash  book  and  credited  to  the 
bank  as  a  check  issued  and  the  charges  distributed  according 
to  the  items  as  recorded  on  the  voucher  portion  of  the  docu- 
ment. This  should  not  be  a  sheet  from  which  the  voucher 
portion  can  be  detached.  It  should  be  a  single  document,  and 
when  it  is  returned  from  the  bank  can  be  filed  with  the  support- 
ing documents  in  the  same  manner  as  a  duplicate  voucher  is 
filed. 

A  simple  form  of  voucher  is  shown  on  this  and  preceding 
page: 


DATE 

DESCRI  PTION 

AMOUNT 

AUDITFD                                        APPROVPn 

FOU  D  HE  fi-EL 

DISTRIBUTION 


DEPARTMENT 

ACCOUNT 
NUMBER 

AMOUNT 

N26 

7.     Books  of  Account. 

We  recommend  the  following  records  as  the  permanent 
books  of  account: 

(a)  Cash  receipts. 

(b)  Cash  disbursements. 

(c)  Journal. 

(d)  General  ledger. 

(e)  Subsidiary  records  as  needed. 


FORMS,  RECORDS  AND  FINANCIAL  ACCOUNTS. 


361 


(a)  Cash  Receipts. — This  should  be  a  loose-leaf  form, 
ruled,  with  printed  headings,  date,  name,  folio  (symbol  check), 
amount  and  with  enough  blank  columns  to  bring  the  sheet  to 
the  size  of  the  disbursement  record,  so  that  they  may  both  be 
used  in  the  same  size  binder  or,  in  the  case  of  the  small  organi- 
zations, in  the  same  binder.  The  last  two  columns  should  be 
ruled  and  have  headings  in  blank  for  bank  deposits. 

(b)  Disbui'sements. — This  record  should  be  practically  a 
stock  ruled  columnar  journal  sheet.  Suggested  headings  are 
date,  name,  folio  (symbol  check),  next  column  blank,  under 
which  would  come  two  headings,  account  and  number,  followed 
by  heading  "check  number'-  and  approximately  ten  blank 
columns,  which  can  be  headed  with  department  or  commitee 
activities.  These  in  turn  are  followed  by  two  columns  with 
general  heading  blank  for  bank  withdrawals  —  this  on  the 
theory  that  many  chambers  use  more  than  one  bank,  but 
hardly  more  than  two  in  one  month,  the  sheet  to  be  the  same 
size  as  the  cash  received  sheet. 

(c)  Journal. — This  should  be  an  ordinary  three-column 
stock-ruled  sheet,  preferably  9i4xl 2-inch  size,  to  be  used  in  the 
same  size  binder  as  the  general  ledger. 


Mofiflilij  Sldfemeni  of  Depdrlmenl  Expenditures 


Depdrtment. 


.Month 


01 


BU  DGET 
MONTH 


EXPENSE 
MON  T-M 


BUDGET 
TO  DATE 


EX  pense: 

TO    DATE 


I     Salaries 

3    PnntJncj 
4-    5l6fionery 

5  Auh    Mire 

6  Travel  I  nq  Expense 

7  Renf 
Etc 

N08A 


3^2 


mp:thods  of  organization  and  operation. 


(d)  General  ledger. — We  recommend  the  ordinary  stock- 
ruled  ledger  sheet,  with  debit  and  credit  sides  equal,  but  with 
the  two  columns,  debit  and  debit  balance  and  credit  and  credit 
balance,  on  each  side  of  the  sheet  for  the  general  ledger.  This 
sheet  is  9i4xl2  inches  to  conform  with  the  journal. 

(e)  Subsidiarj^  records.— We  find  that  it  is  necessary  in 
some  of  the  larger  institutions  to  carry  subsidiary  records  in 
order  to  amplify  the  accounts,  as  shown  in  the  major  records. 


Recapitulation  of  Expenses 

Current   Ycdr  to  Ddfe 

19 

A 

B 

C 

D 

E 

F 

G 

Total 

1  Salaries 

2  Postage 
5  Printinq 

4  Stationery 

5  Auto  til  re 

6  TrdvGlinq  Expenses 

7  Rent 

8  Elc 
9 

10 

II 

12 

15 

14 

15 

16 

17 

18 

19 

20 

Total 

N28B 


FORMS,  RECORDS  AND  FINANCIAL  ACCOUNTS. 


363 


For  instance,  in  the  general  ledger  the  accounts  receivable  ac- 
count is  represented  by  the  membership  ledger,  which  is  sub- 
sidiary and  itemizes  in  detail  the  gross  total  shown  in  the  mem- 
bership account  on  the  general  ledger.  This  is  necessary  in 
other  instances  such  as  the  distribution  of  expenditures  of  com- 
mittees and  departments.  These  forms  can  scarcely  be  stand- 
ardized to  be  adaptable  to  the  needs  of  all  organizations,  but 
they  should  be  made  to  conform  strictly  to  the  general  system 
used  in  the  recapitulation  of  expense  and  the  disbursement 
records. 

S.     Recapitulation  of  Expense. 

In  order  that  this  form  may  be  properly  kept  it  is  recom- 
mended that  the  accounts  of  the  several  departments  or  com 
mittees  be  standardized  as  far  as  possible  on  the  numerical 
basis.  This  is  provided  for  in  the  form  of  the  cash  disburse- 
ment record.  As  an  example,  Department  "A"  (the  "A'^  being 
merely  used  as  a  designation  of  a  department  or  committee) 
would  use  the  numbers  from  1  to  20  to  designate  its  activities, 
1  being  salary,  2  being  postage,  etc. ;  Departments  B,  C,  D,  etc., 
would  use  the  same  numbering  system  for  detail  of  items.  Thus 
"A-3,''  "B-5,"  etc.,  would  instantly  identify  a  charge.  In  other 
words,  the  prefix  (letter)  would  be  the  department  or  commit- 
tee and  the  suffix  (number)  the  expenditure. 


Blank  Chamber  of  Commerce 


Chamber  of  Commerce  Buildimj 

Purchase  Order 


4/^_ 


tut  liii  Humirr  on  hrn'cr 


City  Staio. 
Deliver  to  ^ 


19. 


M. 


QvantHij 


Arfic/e^ 


Price     Amount 


Ordered  by . 
Charge  


Blank  Cham  ber  cf  Commerce 
By 


Secretory 


N29A 


364  MPTTHODS  OF  ORGANIZATION  AND  OPERATION. 

The  monthly  summary  of  expenditures  of  each  department 
(or  committee,  etc.)  should  include  this  information. 

These  monthly  statements  of  departmental  expenditures 
are  brought  together  in  a  general  summary  as  follows:  (See 
p.  362,  No.  8B.) 

9.  Purchase  Order. 

All  purchases  should  be  by  order  signed  by  the  secretary, 
issued  in  triplicate  (or  quadruplet).  A  simple  form  as  shown 
on  page  363 : 

The  original  of  the  purchase  order  goes  to  the  party  from 
whom  goods  are  bought.  The  first  copy,  yellow  (punched  for 
a  loose-leaf  binder) ,  goes  into  a  permanent  binder,  to  be  checked 
off  when  settlement  is  made.  The  second  copy,  pink,  is  held 
and  attached  to  bill  when  received,  so  that  when  voucher  check 
is  signed  it  has  attached,  for  the  information  of  those  required 
to  approve  or  certify,  copy  of  purchase  order,  together  with  bill. 

Where  an  organization  is  departmentized  there  should  be 
as  a  preliminary  to  the  purchase  of  goods  a  requisition,  issued 
by  the  department  manager  or  chairman,  in  response  to  which 
the  goods  are  purchased  and  charged  to  that  department.  Such 
a  form  provides : 

This  department  requisition  is  also  attached  to  the  bill 
when  received  so  that  complete  information  may  be  supplied. 

10.  Expense  Account  Form. 

A  suitable  form  for  recording  expenses  in  traveling  is  con- 
venient and  promotes  accuracy.  Such  a  form  is  suggested  on 
page  365 : 

11.  Petty  Cash. 

For  the  handling  of  petty  cash  items  the  form  on  page  366 
is  recommended : 

12.  Monthly  Membership  Kecord. 

A  useful  form  for  monthly  reports  of  membership  standing, 
as  shown  on  page  366,  gives  this  data : 

13.  Membership  Prospect  Card. 

Supplementing  the  official  membership  record  there  should 
be  maintained  a  permanent  prospect  list,  "permanent"  being 
used  to  imply  that  the  list  is  kept  up  at  all  times,  not  made  up 
sporadically  when  "drives"  are  contemplated.  Such  a  form  is 
given  on  page  367 : 


FORMS,  RECORDS  AND  FINANCIAL  ACCOUNTS. 


365 


REQUISITION 
PURCHASING    DEPARTMENT                       Drth                     /Q 

Please  obfdin  for  /he  use   of  thts  Deparfmenfjhe 
followincj. 

QUANTITY 

DESCRIPTION 

PRICE 

5i,<jnefJ 

Departntpnf 

N29B 


Requisition  Order  Blank  for  Supplies. 


Blank  Chamber  of  Commerce 

Expense  Account 


19- 


%e^o/hw/n^  /s  c?  statement  o^my  Expense  Account  from to /p 

(Signed) Charge 


Approved  by 


Date 


Place 


Rfii^  Pullman 


F\"J!r"  Hotel    Meals  Taxi     Misc.  Total 


N2  10 


Form  for  Recording:  Traveling  Expenses. 


366 


METHODS  OF  ORGANIZATION  AND  OPERATION. 


D&te^ 


For 


Chardei- 
to     [_ 

Requeued  by - 
O.K 


/9—. 


^ PETTY  CASH  RECEIPT        ^o 

Received   oj" Dale 19. 


Blank  Chamber  of  Commerce 


Dollars 


N21I 


Form  for  liancUing  Petty  Cash  transactions. 


rtmllis 

Jan 
Feb 
Etc 

Memberships 

Rraqnations 

Payments 

Old  Oulslandinq  Accounts  1 

MpfUkfS 

m 

Told! 

/ 

Gross 

Merabet-ship 
end  of 
Monlh 

Number 

K2 

Per 
Cent 

Not 

end  of 
Month 

Humber 
Paid 

Per 
Cenl 
Paid 

Members 
Unpaid 

Per 
G?nt 

Ttie 
Unpaid 

yoar 

Resignations 
Pending 

TofQl 

— 

ToIqI 

N2  12 

^ 

1        [ 

^ 

h^ 

Form  for  Monthly  Reports  on  Membership  Standing. 


FORMS.  REC:ORDS  AND  FINANCIAL  ACCOUNTS.  367 


MEMBERSHIP  PROSPECT 


NAME 


ADDRESS. 
PHONE 


LINE  OF  BUSINESS. 
RBCOMENDED    BY_ 


MEMBERSHIP  SECURED    BY_ 
REMARKS 


N213 

Such  forms  as  the  application  blank  and  membership  card 
are  not  included  as  this  report  is  confined  to  those  items  that 
are  a  part  of  the  permanent  record  of  the  chamber. 

PART  II 

In  preparing  this  report  the  committee  on  standardized 
forms  has  considered  the  requirements  of  the  small  chamber  of 
commerce,  the  large  chamber  of  commerce,  the  medium-sized 
chamber  of  commerce,  and  believes  that  while  the  procedure 
necessarily  becomes  more  complex  and  the  forms  more  numer- 
ous and  possibly  more  elaborate  as  the  size  of  the  chamber  in- 
creases, nevertheless  the  same  principles  of  simple  and  sound 
accounting  and  (with  slight  modifications)  the  same  forms 
are  applicable  to  all  regardless  of  size. 

Some  of  the  forms  described  in  part  one  may  not  be  re- 
quired by  a,  chamber,  let  us  say,  with  three  hundred  members. 

Where  it  is  possible  to  know  all  or  the  greater  part  of  the 
membership  personally  the  relative  importance  of  a  system  of 
personnel  cards,  for  example,  decreases  measurably. 

Where  accounts  are  small  in  volume  the  ordinary  check- 
book may  serve  as  well  as  a  specially  prepared  voucher. 

In  the  main,  however,  all  of  the  records  required  by  the 
larger  chamber  are  quite  as  necessary  in  some  form  to  the 


368  METHODS  OF  ORGANIZATION  AND  OPERATION. 

smaller  chamber,  and  if  the  form  devised  be  the  simplest  form 
compatible  with  sound  bookkeeping  and  dependable  results, 
there  is  even  more  reason  why  the  small  chamber,  which  cannot 
maintain  an  accounting  department  with  experts  in  charge, 
should  adopt  a  system  that  has  fewest  possibilities  for  "grief." 
If  there  is,  therefore,  a  "best"  way  for  keeping  membership 
records  and  accounts — which  best  way  your  committee  has  en- 
deavored to  discover — it  is  even  more  important  that  this  best 
Avay  be  made  known  to  the  small  chamber  than  to  the  large 
chamber.  There  are  certain  fundamental  principles  that  apply 
to  the  sound  administration  of  the  funds  of  every  organization. 
Briefly  these  are: 

Principles  That  Govern 

1.  The  financial  operations  of  every  chamber  should  start 
with  a  budget.  This  calls  for  an  estimate  of  the  annual  revenue, 
deduction  to  provide  a  reasonable  margin  of  safety,  setting  aside 
of  a  contingent  fund  to  provide  for  new  activities  and  unfore- 
seen expenditures,  and  the  apportionment  of  the  balance  be- 
tween the  principal  activities  contemplated  for  the  year. 

2.  This  allotment  made,  there  must  be  frequent  and  in- 
telligent reports  to  indicate  its  condition.  Every  month  tlie 
secretary  should  have  before  him  a  statement  which  will  show : 

a.  HoAV  much  money  has  been  spent,  b.  To  what  activities 
it  has  gone.  c.  How  it  has  been  divided  between  the  basic  items 
of  expense  common  to  chamber  of  commerce  activities — print- 
ing, postage,  rent,  salaries  and  the  like.  d.  How  these  expendi 
tures  compare  with  those  of  other  like  periods,  e.  The  condi- 
tion of  the  appropriations  against  which   they  are  charged. 

f.  How  much  of  the  estimated  revenue  remains  to  be  spent. 

g.  How  actual  collections  compare  with  estimated  revenue, 
h.  The  status  of  the  membership,  with  essential  details  concern- 
ing applications,  resignations  and  delinquent  accounts. 

Such  a  statement  enables  the  secretary  to  administer  the 
fund^  of  the  chamber  wisely  and  effectively.  Without  such  in- 
formation good  management  is  impossible. 

3.  All  expenditures  should  be  authorized  in  advance  by 
purchase  order,  signed  by  the  secretary  or  business  manager, 
thus  preventing  unauthorized  expenditures  and  making  cer- 
tain that  obligations  are  incurred  with  a  knowledge  of  the  con- 
dition of  the  appropriations  against  which  they  are  charged. 

4.  All  obligations  incurred  in  any  month  should  be  en- 


FORMS,  RECORDS  AND  FINANCIAL  ACCOUNTS.  369 

tered  in  the  books  before  the  close  of  the  month  either  as  paid 
or  as  accounts  payable,  so  that  the  monthly  financial  statement 
will  be  the  complete  showing  of  the  exact  condition  of  each  ac- 
count, and  only  under  such  condition  can  an  intelligent  analy- 
sis of  monthly  reports  be  made. 

5.  The  system  of  accounts  should  not  be  a  "hand-me- 
down."  It  should  be  made  to  order — patterned  after  the  best 
procedure  that  has  been  developed  in  chamber  of  commerce 
w^ork.  Slip-shod  methods  in  the  accounting  department  reflect 
slip-shod  methods  in  the  operation  of  the  organization  itself. 
It  is  the  place  where  sound  administration  and  businesslike 
methods  should  start,  and  starting  here,  they  will  extend  most 
rapidly  to  every  department  of  the  chamber's  activities. 

With  these  basic  principles  every  chamber  of  commerce 
system  of  records  and  accounts  should  tally  and  the  forms  al- 
ready presented  are  those  which,  in  the  opinion  of  your  com- 
mittee, carry  out  most  simply  and  directly  these  principles. 

There  are  important  particulars  in  which  chamber  of  com- 
merce procedure  differs  and  which  do  not  properly  come  within 
the  scope  of  our  present  considerations. 

The  fiscal  year  of  our  chambers  is  not  uniform.  The  period 
of  billing  is  not  uniform ;  some  bill  annually  in  advance,  some 
semi-annually,  some  quarterly  and  some  at  more  frequent  peri- 
ods. 

Even  where  dues  are  billed  annually  or  semi-annually  the 
practice  differs.  Some  bill  all  dues  at  one  time,  say,  on  January 
1  or  January  1  and  July  1.  Some  chambers  have  a  greater 
number  of  billing  periods.  Two  chambers  have  as  many  as 
twenty-four. 

Securing  Uniformity 

As  an  expression  of  opinion  rather  than  as  a  matter  of  re- 
port your  committee  suggests  as  desirable  and  in  the  interest 
of  uniformity : 

1.  That  the  fiscal  year  coincide  with  the  calendar  year. 

2.  That  dues  be  billed  annually  in  advance.  Semi-annual 
and  quarterly  payments  mean  more  bookkeeping,  more  trouble 
in  collecting  accounts  and  more  opportunities  for  a  member  to 
resign.  Nor  does  there  appear  to  be  any  evidence  to  support 
the  theory — save  in  exceptional  cases,  which  can  be  handled 
individually — that  the  membership  finds  it  easier  to  pay  in 
installments. 


370  METHODS  OF  ORGANIZATION  AND  OPERATION. 

3.  The  billing  of  dues  need  not  be  confined  to  one  billing 
date.  There  are  advantages  in  the  case  of  medium-sized  or 
large  chambers  in  distributing  the  work  of  billing  and  collec- 
tion throughout  the  yesLV.  It  avoids  a  peak-load  at  the  begin- 
ning of  the  fiscal  year  when  the  attention  of  the  new  adminis- 
tration should  be  devoted  to  a  constructive  program  of  activity. 

The  most  important  single  record  that  a  chamber  maintains 
is  the  official  list  of  members  (the  membership  ledger,  form 
one),  on  which  is  recorded  the  charge  and  the  payment  of  dues. 
There  should  be  but  one  "official"  list,  not  used  for  general 
reference,  but  kept  under  lock  and  key  and  used  only  for  the 
keeping  of  the  chamber's  account  with  each  member  and  as  a 
standard  against  which  other  lists  required  for  general  refer- 
ence may  be  checked  from  time  to  time. 

The  majority  of  chambers,  as  will  appear  in  part  three,  use 
a  loose-leaf  form  for  the  official  membership  list.  The  advan- 
tage where  the  membership  is  small  is  obvious.  The  pages  are 
held  securely  in  one  jjlace  and  cannot  easily  be  detached  or  lost. 
As  the  number  increases,  however,  the  card  index  develops  cer- 
tain advantages.  A  binder  has  limitations,  whereas  a  card 
index  may  be  expanded  indefinitely.  With  some  of  the  new 
devices  that  have  come  into  the  market  for  the  safe  and  con- 
venient handling  of  card  records  these  advantages  are  empha- 
sized. For  this  reason  the  form  recommended  by  your  com- 
mittee is  made  applicable  for  use  in  either  manner. 

Continuous  Bound  Records 

As  to  the  necessity  of  a  bound  continuous  record,  opinion 
in  the  committee  was  divided.  The  principal  argument  in  its 
favor  is  that  it  stands  as  a  permanent  safeguard  against  error. 
Cards  and  loose  leaves  may  occasionally  be  lost  or  destroyed 
and  inasmuch  as  there  has  been  eliminated  from  the  continuous 
record  such  items  as  addresses  and  other  data,  which  must  be 
corrected  and  "kept  up,'-  so  that  the  effort  involved  is  compara- 
tively small,  this  form  has  been  included,  though  it  does  in  fact 
represent  a  duplication  of  other  records.  This  record  gives  an 
exact  total  of  dues  payable,  with  which  the  total  billing  must 
agree.  Deductions  for  resignations  and  other  terminations  are 
made  in  a  single  memorandum  at  each  billing  date,  making  a 
proper  subtraction  from  the  total. 

Billing  in  almost  all  cases  may  be  done  directly  from  the 


FORMS,  RECORDS  AND  FINANCIAL  ACCOUNTS.  371 

membership  ledger  forms.  Where  this  is  inadvisable  by  reason 
of  the  number  of  billing  dates  a  tickler  may  be  employed,  made 
up  of  carbon  of  the  original  bill  for  dues  filed  in  a  binder  under 
billing  dates. 

Certain  forms  recommended  are  designed  with  a  view  to 
using  window  envelopes.  This  applies  to  the  bill  (form  four) 
and  the  voucher  check  (form  six).  This  not  only  effects  a  sav- 
ing where  the  number  of  such  items  is  comparatively  large,  but 
it  promotes  accuracy  and  for  that  reason  alone  is  desirable. 

The  committee  has  not  gone  into  great  detail  with  respect 
to  the  books  of  account.  It  goes  without  saying  that  all  cham- 
ber records  must  be  kept  by  the  double-entry  bookkeeping  sys- 
tem. This  means  that  the  books  must  be  kept  by  a  competent 
person.  That  is  essential  under  all  circumstances.  Where  the 
accounts  are  comparatively  small  the  bookkeeping  methods  cor- 
respond closely  with  ordinary^  practice.  As  the  volume  in- 
creases the  degree  of  competence  of  those  handling  the  accounts 
must  necessarily  increase.  And  with  the  forms  and  recom- 
mendations already  presented  your  committee  feels  that  the 
systems  already  employed  can  readily  be  adapted  to  the  simpli- 
fied procedure  herein  recommended  without  going  into  greater 
technical  detail.  We  have  no  desire  to  attempt  the  unwelcome 
task  of  putting  the  members  of  the  N.  A.  C.  O.  S.  through  a 
course  in  advanced  accountancy.  The  forms  and  principles 
suggested,  we  feel,  speak  adequately  in  their  own  behalf. 

PART  III 
Of  the  questionaires  sent  to  the  membership  of  the  N.  A. 
C.  O.  S.,  131  were  returned.    They  are  classified  as  follows : 

From  organizations  under  500  members 35 

Organizations  of  from  500  to  909 40 

Organizations  of  1,000  to  2,999 , 23 

Organizations  of  from  3,000  up 17 

115 
No  information 16 

131 

These  questionaires  were  studied  for  the  purpose  of  de- 
termining the  best  forms  for  the  following  records: 

1.  The  official  membership  record  for  accounting  pur- 
poses. 

2.  Continuous  record  of  members. 


372  MP]THODS  OF  ORGANIZATION  AND  OPERATION. 

3.  Personnel  card  record  form. 

4.  Bills. 

5.  Budget  form. 

6.  Voucher. 

7.  Books  of  account:  (a)  record  of  cash  received,  (b) 
record  of  cash  disbursements,  (c)  journal,  (d)  gen- 
eral ledger,  ( e )  subsidiary  ledger  or  other  records. 

8.  Kecapitulation. 

9.  Requisitions. 

10.  Expense  account  form. 

11.  Petty  cash  form. 

12.  Monthly  membership  records. 

13.  Membership  prospect  cards. 

Investigation  of  the  replies  with  respect  to  the  form  of  the 
official  membership  record  reveals  the  following: 

Card Not  Loose 

3x5       4x6        5x8  given  leaf  Bound  Total 

Under  500  7            10             . .               6  11  1  35 

500  to  999 5               8               1               2  28  1  40 

1,000  to  2,999 6               3               4  ..  9  1  23 

3,000  and  over 4              1              2              1  8  1  17 

Total 22  22  7  9  51  4  115 

We  shall  not  attempt  for  purposes  of  this  report  to  tabula 1 3 
the  replies  to  most  of  the  questions  propounded.  In  many  cases 
the  answers  do  not  lend  themselves  to  tabulation.  In  others 
the  information  revealed  is  of  value  primarily  to  the  committee 
as  a.  basis  of  its  recommendations.  The  data  on  billing  dates, 
however,  is  interesting.    The  tabulation  reveals : 


Fixed  Dates- 

Varying  Dates 

Semi- 

Semi- 

Not 

Quar.     An. 

An. 

Mo.    Quar.     An. 

An. 

Given 

Total 

9           8 

11 

2 

2 

35 

11           8 

9 

2         ..           1 

2 

1 

40 

6           4 

7 

2 

3 

23 

4           3 

5 

..11 

3 

17 

Under  500 3 

500  to  999 6 

1,000  to  2,999...   1 
3,000  and  over 

Total 10        30        23        32  6  1  2  8  3  115 

Supplementing  this  report,  the  forms  of  a  number  of  cham- 
bers are  displayed  as  exhibits.  We  cannot  show  them  all,  nor 
have  we  made  a  special  effort  to  select  the  best  or  the  worst. 
They  are  presented  as  a  matter  of  interest  and  we  believe  that 


FILING  SYSTEMS  FOR  CHAMBERS  OF  COMMERCE.  373 

a  careful  examination  of  each  system  illustrated  will  prove 
as  helpful  and  as  interesting  to  each  one  who  goes  over  the 
forms  for  himself  as  they  have  been  helpful,  not  to  say  inspir- 
ing, to  your  committee. 

Our  suggestions  are  left  with  you  for  what  they  may  be 
worth.  We  believe  that  much  can  be  gained  through  greater 
uniformity  in  the  keeping  of  records  and  accounts  and  trust 
that  this  report  may  aid  in  approaching  that  end. 


Filing  Systems  for  Chambers  of  Commerce 

By  S.  CRISTY  MEAD 

Files  constitute  the  key  to  the  successful  physical  opera- 
tion of  an  organization  office,  because  they  are  the  repository  iu 
which  are  placed  all  the  papers,  documents  and  material  of 
A^arious  types  which  must  furnish  the  basis  of  consideration  and 
action  by  members  of  the  staff,  committees  and  board  of  direc- 
tors. 

The  so-called  filing  system,  therefore,  is  of  fundamental  im- 
portance to  all  other  operations  conducted  by  the  organization. 
]  said  "so-called''  filing  systems  because,  in  my  judgment,  the 
facility  needed  is  not  so  much  a  filing  system,  which  implies  a 
place  in  which  to  put  things,  but  it  must  be  primarily  a  finding 
system,  which  implies  a  repository  from  which  necessary  ma- 
terial can  be  secured  with  speed,  completeness  and  accuracy. 

Requisite  Principles 

Requisite  Principles.  There  are  five  requisites  incident  to 
a  successful  and  efficient  sj^stem: 

First.  It  must  be  a  finding  system;  it  must  not  only  put 
the  papers  out  of  sight,  but  must  produce  them  instantly  when 
required. 

Second.  It  must  be  as  simple  in  plan  of  construction  as 
possible. 

Third.  It  must  not  require  an  efficiency  expert  to  operate 
it. 

Fourth.  It  must  be  elastic ;  that  is,  capable  of  expanding 
with  the  growth  of  business  and  with  the  least  possible  altera- 
tion or  rearrangement  of  material  already  placed  therein. 


374  mp:thods  of  organization  and  operation. 

Fifth.  It  must  serve  and  not  dominate  or  revolutionize 
your  organization. 

Basis  for  Filing  Systems 

From  conferences  Avith  some  professional  experts  on  filing 
and  from  a  study  of  the  brochures  issued  by  others,  I  find  that 
it  is  practically  agreed  that  there  are  two,  and  only  two,  funda- 
mental bases  upon  which  the  mechanical  construction  of  a 
filing  system  must  be  founded.  These  two  bases  are:  First, 
ISuhjects;  and,  second.  Names. 

A  filing  plan  is  merely  a  very  essential  tool  in  the  conduct 
of  the  organization  business.  It  is  highly  important,  therefore, 
that  the  nature  of  that  business  should  carefull}^  be  considered 
in  order  to  determine  the  exact  type  of.  filing  tool  best  adapted 
to  serve  the  requirements  of  that  business. 

It  will  be  conceded,  I  believe,  that  a  chamber  of  commerce 
is  dealing  primarily  with  principles,  that  is — subjects.  They 
constitute  the  bases  for  all  committee  deliberations  and  recom- 
mendations, for  all  activity  on  the  part  of  the  board  of  direc- 
tors and  of  the  members.  Therefore,  in  chamber  of  commerce 
work  the  filing  system  should  be  constructed  upon  the  basis  of 
subjects  rather  than  of  names.  Names,  in  chamber  work,  are 
merely  incidental  to  the  subjects,  whether  the  documents  con- 
sist of  correspondence,  reports  or  any  other  type.  This  is  true 
even  in  connection  with  such  a  subject  as  membership,  corre- 
spondence in  regard  to  which,  from  the  organization's  stand- 
point, relates  primarily  to  the  subject  of  membership  rather 
than  to  the  individual  member. 

In  this  respect  a  commercial  organization  differs  radically 
from  most  business  establishments  which  deal  in  many  cases 
with  only  one  subject,  such  as  "cotton,"  or,  at  most,  with  a  rela- 
tively few  subjects  descriptive  of  their  respective  stocks  in 
trade.  With  such  a  business  establishment  the  name  is  the  im- 
portant thing,  because  its  operations  consist  of  personal  tran- 
sactions in  which  the  commodity  or  subject  is  secondary,  the 
primary  object  of  the  business  being  to  consummate  sales,  which 
are  personal  transactions  with  their  customers. 

Methods  of  Construction 

It  is  maintained  by  experts  on  filing  that  there  are  two 
primary  methods  of  constructing  such  a  plan;  one,  the  direct 
alphabetic  method;  and,  the  other,  a  numeric  method.     There 


FILING  SYSTEMS  FOR  CHAMBERS  OF  COMMERCE.  375 

Las  also  been  devised  a  method  known  as  the  "automatic  index 
system/'  which  is  a  combination  of  the  two  just  mentioned,  and 
which  depends  hirgely  on  certain  special  physical  equipment. 
Where  necessary  for  special  uses  one  or  the  other  of  these  meth- 
ods is  supplemented  by  a  geographic  system. 

Subject  filing  by  the  direct  alphabetic  method  consists  of 
arranging  in  alphabetic  order  individual  folders,  upon  which 
are  written  the  subject  titles. 

Where  subjects  are  divided,  the  subdivisions  are  placed  in 
separate  folders  and  filed  immediately  behind  the  principal 
folders,  with  subject  titles  and  their  divisions  both  shown  on 
the  tabs  on  the  subject  folders. 

Equipment  for  this  method  usually  consists  of  compressed 
board  guides  for  the  alphabetical  divisions,  behind  which  the 
individual  name  or  subject  folders  are  placed. 

Miscellaneous  folders — one  for  each  alphabetic  guide — are 
often  used  to  hold  correspondence  of  a  strictly  miscellaneous 
character,  or  relative  to  an  active  subject  until  the  matter  has 
become  sufficiently  important  or  voluminous  to  require  an  in- 
dividual folder. 

When  correspondence,  classified  by  subjects  and  filed  alpha- 
betically, reaches  a  considerable  volume  it  is  advisable  to  sup- 
port the  file  itself  with  a  reference  index.  The  Chamber  of 
Commerce  of  the  United  States  has  in  operation  such  an  index. 

Automatic  Index  and  Numeric  Method 

The  automatic  index  system  may  also  be  used  for  subject 
filing.  This  index  has  two  groups  of  guides.  Subjects  are  filed 
alphabeticalh^  behind  the  primary  guides,  and  divisions  of  the 
subjects  are  also  filed  alphabetically  behind  the  secondary 
guides  in  the  same  primary  subdivisions. 

For  a  number  of  reasons  I  believe,  as  a  result  of  my  studies 
as  well  as  of  experience,  that  the  numeric  method  is  best  adapt- 
ed to  subject  filing  for  commercial  organizations. 

Under  the  numeric  system  consecutive  numbers  are  as- 
signed to  the  principal  subjects.  These  subjects  are  then  di- 
vided into  as  many  dependent,  or  sub-subjects,  as  seems  neces- 
sary by  the  use  of  an  auxiliarj^  number  separated  from  the 
principal  number  by  a  decimal  point.  This  method  provides 
unlimited  elasticity  with  a  minimum  of  disarrangement  of  the 
existing  filing  through  additions  thereto  as  new  work  develops. 


376  METHODS  OF  ORGANIZATION  AND  OPERATION. 

When  a  division  of  a  dependent  subject  becomes  advisable 
a  letter  of  the  alphabet  may  be  added  to  the  auxiliary  number. 
To  illustrate:  The  subject  of  cables  is  given  the  number  99. 
Under  that  is  a  sub-subject  of  censorship  of  cables,  which  is 
given  the  number  99.1. 

This  sub-subject  is  then  divided  into  four  groups:  1.  Brit- 
ish refund  on  cables  held  up,  which  is  given  number  99.1a.  2. 
American  censoi*ship,  Avhich  is  given  the  number  99.1b.  3.  In- 
formation secured  regarding  Americanship  censorship  for 
censors  office,  which  is  given  number  99.1c.  4.  American  re- 
fund on  cables  held  up,  99.1  d. 

This  numeric  system  has  great  elasticity  as  new  subjects 
are  added  from  time  to  time  by  simply  assigning  the  next  un- 
used number  to  a  subject  as  it  develops.  A  reference  card  must 
be  made  out  for,  and  a  file  number  assigned  to,  each  subject. 
These  cards  are  filed  alphabetically  and  give  reference  by  num- 
ber of  folder  to  any  paper  in  the  file. 

Geographic  System 

The  geographic  system  above  mentioned  is  of  use  only  in 
special  cases  aa  here  it  is  desirable  to  file  documents  by  geograph- 
ic divisions,  and  it  is  so  simple  that  its  title  fully  describes  it. 

Thus  far  I  have  referred  to  my  conception  of  the  principles 
underlying  filing  needs  and  to  the  recognized  methods  of  con- 
structing filing  plans.  Pursuant  to  a  request  made  at  the  last 
annual  convention,  the  bulk  of  this  paper  will  be  devoted  to  a 
brief  outline  of  the  system  used  in  the  office  of  The  Merchants' 
Association  of  New  York. 

The  association's  filing  plan  is  the  result  of  evolution  and 
revolution.  When  the  organization  first  began  its  operations 
the  opinion  obtained,  which  was  subsequently  proved  erroneous, 
that  the  organization's  dealings  would  be  primarily  with  indi- 
viduals rather  than  with  subjects.  Accordingly  there  was  in- 
stalled an  alphabetical  filing  system  predicated  upon  names  as 
a  basis. 

For  a  few  years  this  operated  fairly  well  because  the  ac- 
tivities of  the  organization  were  comparatively  few,  the  number 
of  subjects  dealt  with  was  limited  and  the  filing  system,  there- 
fore, w^as  relatively  unimportant  in  size  and  in  diversity  of  mat- 
ters. 

As  the  association's  activities  grew,  however,  it  soon  be- 


FILING  SYSTEMS  FOR  CHAMBERS  OF  COMMERCE.  377 

came  evident  that  the  necessity  of  securing  instantly  from  the 
files  all  papers,  whether  correspondence  or  reports,  relative  to 
a  certain  subject  could  not  be  met  by  the  alphabetical  filing 
system  predicated  upon  the  name  basis.  Two  or  three  different 
attempts  were  made  to  reorganize  the  system  with  correspond- 
ing chaos  during  the  time  of  reorganization. 

Subject  Basis  and  Numeric  Plan 

Finally  there  was  evolved,  out  of  our  experiences  and  neces- 
sities, the  conviction  that  the  subject  basis  with  the  most  elastic 
method  of  operation  was  required  to  serve  the  organization's 
purposes. 

This  at  once  produced  a  revolution  in  our  filing  system — 
a  complete  change  from  the  name  basis  to  the  subject  basis, 
and  the  installation  of  the  numeric  instead  of  the  alphabetical 
plan. 

The  numeric  plan  was  selected  because  of  our  belief  in  the 
greater  degree  of  elasticity  and  less  degree  of  disarrangement 
and  disorganization  of  files  due  to  the  rapid  addition  of  new 
and  unrelated  subjects  thereto. 

Centralization  of  Files 

In  the  first  place,  as  a  result  of  experience,  we  found  it 
advisable  to  create  the  file  as  a  central  filing  department  for 
all  bureaus  and  branches  of  the  association.  We  have  found 
that  a  central  filing  bureau  is  the  most  efficient  and  satisfac- 
tory method,  because  no  matter  how  large  the  chamber  may  be 
or  how^  many  different  departments  it  may  develop,  all  the 
branches  are  so  correlated  that  any  one  of  them  is  apt  to  need 
a  certain  document  at  some  particular  time.  A  central  filing 
department  makes  this  both  possible  and  practicable  without 
losing  record  of  the  exact  w  hereabouts  of  the  document  at  any 
particular  moment.  A  central  department  also  makes  all  docu- 
ments more  quickly  available  to  the  secretary  and  other  mem- 
bers of  the  staff  whose  relations  extend  to  all  the  various 
branches  or  bureaus  of  the  organization.  Moreover,  and  quite 
as  important,  is  the  fact  that  responsibility  for  the  effective 
operation  of  the  filing  plan  is  placed  squarely  upon  the  shoul- 
ders of  one  individual,  namely,  the  head  of  the  filing  depart- 
ment. 

Tt  has  been  my  endeavor  in  making  the  following  descrip- 


378  mi:thods  of  organization  and  operation. 

tion  of  our  filiug  system  as  far  as  possible  to  avoid  being  too 
technical  to  be  readily  understood,  because  the  successful  use 
of  that  system,  or  of  any  other  system,  implies  an  intelligent 
cooperation  on  the  part  of  the  users  as  well  as  of  the  file  clerks. 
I  Avould  particularly  call  attention  to  the  rules  regarding  co- 
operation as  set  forth  in  the  description. 

The  System 

(a)  It  is  a  subject  file.  A  list  of  general  subjects  is  kept 
in  a  folio  arranged  numerically. 

(b)  A  card  index  (3x5)  is  kept  of  all  subjects  and  sub-sub- 
jects, arranged  alphabetically  within  a  card  file  box.  This  box 
is  kept  on  the  desk  of  the  file  clerk  in  charge.  There  should  be 
a  card  for  every  subject  and  sub-subject  in  the  files.  Each  sub- 
subject  should  refer  back  to  each  main  subject  heading. 

All  material  sent  to  the  files  must  show  that  it  has  re- 
ceived proper  attention. 

(a)  All  correspondence  before  being  sent  to  the  files  must 
be  checked  or  date  of  reply  marked  to  indicate  that  it  has  had 
the  attention  of  the  person  in  the  otfice  to  whom  it  had  been  re- 
ferred. 

(b)  If  answer  has  been  made  by  telephone  or  personal 
visitation,  this  fact  should  be  noted  on  the  letter. 

(c)  The  file  clerks  are  not  to  receive  into  the  files  any 
material  unless  they  are  certain  it  has  had  proper  attention. 
For  example:  A  letter  is  received  from  B.  Brown  &  Brother 
dwelling  upon  tAvo  subjects — foreign  trade  and  a  request  for  a 
publication  issued  by  the  organization.  It  is  marked  for  the 
persons  or  bureau  concerned.  Should  this  letter  reach  the  files 
without  the  necessary  check  or  date  of  reply  to  each  subject, 
the  file  clerk  must  return  it  at  once  for  proper  attention. 

Carbon  Copies 

Two  carbon  copies — a  yellow  and  a  green — are  made  of 
all  out-going  correspondence. 

(a)  The  yellow  carbon  is  filed  in  the  subject  file.  The 
papers  within  a  subject  or  sub-subject  folder  are  filed  alpha- 
betically. Within  the  subject  file  all  papers  having  to  do  with 
any  one  firm,  individual  or  corporation  are  attached  together, 
the  latest  date  on  top.  Use  pins  to  fasten  papers,  as  clips  re- 
sult in  torn  documents  and  other  inconveniences.     When  it  is 


FILING  SYSTEMS  FOR  CHAMBERS  OF  COMMERCE.  379 

sufficiently  heavy  it  is  backed  up  by  a  cardboard  back  and 
held  together  with  an  elastic  band. 

(b)  The  green  carbon  sheets  serve  as  a  name  index  and 
are  filed  alphabetically.  All  green  carbon  sheets  addressed  to 
any  one  firm,  individual  or  corporation  are  pinned  together,  the 
latest  date  on  top.  In  some  instances  the  correspondence  with 
a  firm,  individual  or  corporation  is  sufficiently  voluminous  to 
warrant  its  being  placed  in  a  separate  folder.  On  the  green 
carbon  is  placed  the  number  of  the  folder  in  which  the  corre- 
sponding yellow  carbon  is  being  filed.  No  one  has  access  to  the 
green  sheets  save  the  clerks  in  the  filing  department.  Under 
no  circumstances  are  green  sheets  to  be  taken  from  the  files 
without  the  permission  of  the  secretary,  and  this  only  when 
the  yellow  sheet  has  been  lost,  and  to  permit  a  copy  to  be  made 
thereof.  If  a  letter  received  by  the  organization  is  of  a  nature 
which  requires  no  answer,  or  lias  been  answered  by  telephone 
or  personal  visitation,  the  file  clerk  makes  a  green  substitution 
sheet,  thus  indicating  it  has  been  received  by  the  filing  depart- 
ment. The  substitution  green  sheet  is  placed  in  the  alphabeti- 
cal index. 

Circular  Letters 

Two  copies  of  all  circular  letters  are  sent  to  the  files  with 
a  list  of  persons  to  whom  the  letters  are  addressed  attached  to 
each  letter. 

One  of  the  copies  is  marked  "circular''  and  is  placed  in  the 
proper  subject  folder.  Tlie  other  is  marked  "duplicate  circu- 
lar" and  is  placed  in  the  green  sheet  index,  alphabetically  filed 
under  the  letter  "0.-'  When  looking  up  or  matching  up  incom- 
ing correspondence,  which  very  often  refers  to  a  date  without 
giving  the  subject,  the  file  clerk  has  two  places  to  look  for  the 
letter  referred  to : 

1.  In  the  green  sheet  alphabetical  index,  under  the  firm, 
individual  or  corporation  name ;  or 

2.  On  the  lists  attached  to  the  "duplicate  circular''  of  that 
date. 

Cross-Reference  Slips 

If  an  incoming  letter  is  received  containing  two  or  more 
subjects,  cross-reference  slips  are  filled  out  and  placed  in  the 
other  subject  or  subjects  referred  to. 

For  each  document  or  letter  taken  out  of  the  files  a  blue 
charge  sheet  (Letter  Taken  Out)  is  made  in  substitute  and  is 


380  METHODS  OF  ORGANIZATION  AND  OI'ERATION. 

filed  in  the  folder  from  which  the  correspondence  is  taken.  This 
charge  sheet  remains  in  the  folder  until  the  correspondence  is 
returned,  when  the  slip  is  destroyed  by  the  filing  department. 

It  is  absolutely  necessary  that  all  correspondence,  reports, 
papers  or  documents,  which  ultimately  would  reach  the  files, 
be  sent  promptly  to  the  filing  bureau.  Only  in  this  way  can 
the  filing  system  be  kept  complete. 

If  it  is  desired  that  papers  be  returned  for  immediate  or 
future  reference,  there  is  attached  to  the  letter  or  document 
an  orange  "return  slip."  On  thi^  slip  the  person  who  wishes  the 
correspondence  returned  fills  in  the  date  on  which  he  desires 
it  and  signs  his  name  thereto.  A  record  of  the  papers  to  be  re- 
turned is  kept  in  a  diary.  It  is  advisable  to  use  a  standard 
diary  blank  book  rather  than  cards,  as  cards  are  apt  to  be  lost 
or  misplaced.  Each  moraing  the  clerk  in  charge  of  the  filing 
bureau  consults  this  diary,  takes  from  the  files  all  the  papers 
to  be  returned  that  day  and  sends  them  to  the  bureau  or  indi- 
viduals Avho  have  made  the  requests  therefor.  The  "return 
slip''  remains  attached,  and  when  the  correspondence  is  re- 
turned to  the  filing  bureau  it  must  bear  the  O.  K.  and  signature 
of  the  person  who  has  requested  it.  The  slip  is  then  destroyed 
by  the  filing  department.  AVhile  it  is  out  of  the  files,  of  course, 
one  of  the  blue  charge  sheets  (Letter  Taken  Out),  referred  to 
previously,  is  placed  in  the  proper  subject  folder. 

Committee  Correspondence 

In  general,  committee  correspondence  and  documents  are 
kept  in  the  general  subject  file  under  the  proper  subject.  In 
other  words,  we  have  no  special  committee  file.  There  is,  of 
coui*se,  a  certain  amount  of  correspondence,  such  as  calls  for 
meetings,  committee  appointments,  minutes,  reports,  etc.,  w^hich 
must  be  kept  properly  filed  under  the  name  of  the  committee 
to  which  they  refer.  For  example,  a  number  is  assigned  to  the 
general  subject  "committee.''  A  point  and  number  is  then  as- 
signed to  each  committee.  For  each  committee  there  are  four 
folders,  as  follows: 

1.  General  folder,  in  which  is  placed  the  correspondence 
concerning  appointments  to  the  committee,  resignations  and  no- 
tices of  meetings  thereof. 

2.  A  folder  for  the  minutes,  which  are  bound  in  a  special 
binder. 


FILING  SYSTEMS  FOR  CHAMBERS  OF  COMMERCE.  381 

3.  A  folder  for  reports,  which  are  bound  in  a  special 
binder. 

4.  The  agenda  (often  called  "docket"),  in  which  is  filed 
correspondence  and  papers  to  receive  the  attention  of  the  com- 
mittee. 

Whenever  correspondence,  a  letter  or  a  document  is  to  be 
referred  to  a  committee  for  its  attention,  this  fact  is  noted  on 
the  paper  before  it  is  sent  to  the  files.  The  file  clerk  places  on 
the  green  sheet  the  proper  file  number.  In  the  subject  file  is 
placed  a  blue  charge  sheet  (Letter  Taken  Out),  indicating  that 
the  file  is  to  be  found  in  the  agenda  folder.  The  agenda  num- 
ber is  placed  on  the  paper  temporarily  and  the  paper  itself  is 
placed  in  the  agenda  folder  of  the  proper  committee  until  it 
has  received  the  attention  of  the  committee. 

Agenda  Card  and  Slip 

A  card  index  of  the  material  in  the  agenda  of  the  various 
committees  is  kept  in  the  office  of  the  secretary  by  the  file  clerk 
in  charge.  In  this  way  the  secretary  constantly  keeps  informed 
concerning  the  material  awaiting  committee  action  and  the 
status  thereof.  Agenda  slips  corresponding  to  these  cards  are 
attached  to  the  documents  in  the  committee  agenda.  When 
the  documents  have  received  the  attention  of  the  committee  the 
action  taken  by  the  committee  is  noted  on  the  agenda  slip  at- 
tached to  the  correspondence  and  the  corresponding  agenda 
card  in  the  secretary's  index  is  destroyed.  The  correspondence 
is  then  placed  in  the  proper  subject  folder,  after  the  agenda 
number  has  been  changed  to  the  proper  subject  number. 

Very  often  certain  inquiries  are  received  by  an  organiza- 
tion which  necessitate  more  or  less  research  work.  These  in- 
quiries are  filed  in  the  proper  subject  folder,  under  the  name 
of  the  firm,  individual  or  corporation  seeking  the  information, 
and  all  correspondence  resulting  therefrom  is  connected  up 
by  checking  or  writing  the  name  of  the  inquirer  on  the  yellow 
carbon  and  on  the  green  carbon  directly  under  the  file  number 
within  the  stamp  mark.  The  yellow  carbon  copies  and  their 
replies  are  filed  directly  back  of  the  firm,  individual  or  corpora- 
tion seeking  the  information,  alphabetically  and  chronological- 
ly arranged.  The  green  carbon  is  filed  in  the  alphabetical  index 
with  the  name  addressed. 

Requisition  pads  are  furnished  each  of  the  departments, 


382  METHODS  OF  ORGANIZATION  AND  OPERATION. 

which  are  used  in  ordering  corresi^ondence  from  the  files,  or^ 
where  time  is  pressing,  requisitions  may  be  made  by  telephone. 

There  are  tAv^o  kinds  of  folders  used : 

1.  Numerical  folder — having  the  tab  at  the  extreme  right 
end. 

2.  Special  folder — ha\dng  the  tab  in  the  middle  of  the 
folder. 

The  numerical  folder  is  the  most  generally  used.  Orderli- 
ness and  neatness  of  the  files  are  important  for  securing  effi- 
ciency, accurac}^  and  speed  in  handling  the  material,  both  in- 
coming and  outgoing.  When,  therefore,  the  material  in  a  given 
folder  becomes  voluminous  it  is  advisable  to  divide  it  into  sev- 
eral folders,  noting  the  subject  number  and  alphabetical  divi- 
sion on  each  folder.  When  correspondence  with  a  firm,  indi- 
vidual or  corporation  is  sufficiently  heavy  to  warrant  it,  make 
a  special  folder,  marking  the  name  and  number  on  the  tab. 

The  special  folder  is  also  used  for  correspondence  within 
a  subject  folder,  which  is  called  for  in  bulk;  for  example,  the 
organization  receives  considerable  correspondence  requesting  it 
to  act  in  favor  of  or  in  opposition  to  certain  legislation.  The 
committee  acting  on  the  particular  subject  writes  or  recom- 
mends that  a  letter  be  sent  to  the  federal  or  state  officials  or 
departments  interested,  informing  them  of  the  recommendations 
of  the  organization.  This  is  followed  up  by  the  receipt  of  cor- 
respondence in  reply  and  is  almost  always  called  for  in  bulk 
by  the  interested  members  of  the  staff  or  by  the  committee. 
This  special  folder  should  have  a  title  placed  on  the  tab  in  ad- 
dition to  its  file  number. 

Sorting  Tray  and  Transfer 

A  sorting  tra}^  is  very  helpful,  one  half  containing  a  set 
of  alphabetical  guides  and  the  other  half  a  set  of  main  subject 
guides.  This  insures  the  finding  of  indexed  correspondence 
in  the  files  or  in  the  sorting  tray  and  avoids  the  necessity  of 
spreading  correspondence  on  the  desks. 

General  routine  correspondence  must  either  be  destroyed  or 
transferred  at  intervals  of  three  to  six  months,  as  the  clerks  find 
time.  Live,  active  correspondence  is  kept  in  the  active  file.  In- 
active correspondence  must  be  kept  in  the  transfer  file,  follow- 
ing exactly  the  same  system  as  is  followed  in  the  general  active 


FILING  SYSTEMS  FOR  CHAMBERS  OF  COMMERCE.  383 

file.  Some  correspondence  can  be  transferred  after  six  months 
and  marked  to  be  destroy eci  six  months  or  one  year  later. 

FoIdei*s  from  which  correspondence  is  taken  should  be 
marked:     "Prior  to  (date)  —  (Transferred)." 

When  a  folder  with  its  contents  is  placed  in  the  transfer 
files  a  new  folder  must  replace  it  in  the  active  file,  marked  and 
stamped:  ^^Prior  to  (date)  —  (Transferred)." 

Folders  from  which  correspondence  has  been  taken  and 
destroyed  should  be  marked:  "Prior  to  (date)  —  (Destroyed)." 

Co-operation  of  Office  Staff.  The  successful  use  of  this  or 
of  any  other  system  implies  an  intelligent  cooperation  on  the 
part  of  the  usei-s  as  well  as  of  the  file  clerks,  to  secure  which  the 
following  rules  are  strictly  observed : 

(a)  Rules  for  Persons  Outside  of  Filing  Department, 

1.  All  outgoing  letters  and  office  memoranda  should  have 
yellow  and  green  carbon  copies* 

2.  Every  letter,  memorandum,  report,  etc.,  must  be  dated. 

3.  No  correspondence  should  be  held  on  the  desks  await- 
ing attention.  The  follow-up  system  provides  slips  to  be  used 
on  all  correspondence  required  at  a  later  date  and  will  be  re- 
turned as  indicated. 

4.  All  correspondence,  when  sent  to  the  files,  must  bear 
either  a  check,  initials  or  date  of  reply  to  show  that  it  has  had 
attention.  If  answered  by  telephone  or  personal  visitation,  this 
fact  should  be  noted  on  the  letter. 

5.  Each  letter  should  contain  one  subject  only. 

6.  Tavo  copies  of  every  circular  letter  should  be  sent  to 
the  files  with  mailing  lists  attached. 

7.  All  letters  sent  out  of  the  office  should  have  copies 
made  for  the  files. 

8.  No  one  but  the  file  clerks  are  to  have  access  to  the  files. 

(b)  Rules  for  the  Attention  of  File  Clerks. 

1 .  Each  morning  notices  of  the  day's  committee  meetings 
are  given  the  file  clerk  in  charge.  A  copy  of  the  notice  sent  to 
the  committee,  the  replies,  the  minutes  and  agenda  are  taken 
from  the  files  and  given  to  the  secretary  of  the  committee. 

2.  Correspondence  must  not  be  allow^ed  to  lie  on  the  desks 
or  counter.  Evervthin«:  classified  must  be  found  either  in  the 
file  or  in  a  sorting  tray. 


384  METHODS  OP^  ORGANIZATION  AND  OPERATION. 

3.  All  correspondence  must  be  filed  alphabetically  within 
subject  folders — all  papers  belonging  to  one  firm,  individual 
or  corporation  attached  together,  with  latest  date  on  top. 

4.  Correspondence  taken  from  the  files  must  be  replaced 
by  blue  charge  sheets,  which  must  be  removed  from  file  when 
correspondence  is  returned. 

5.  No  green  sheets  are  to  be  taken  away  from  the  filing 
department. 

6.  FoUow-Up  System— ESiOh  morning  the  file  clerk  gets 
from  the  files  all  correspondence  entered  in  the  diary  for  that 
day  and  returns  it  to  the  bureau  or  individual  whose  signature 
appears  on  the  return  slip.  The  slip  remains  attached  and 
when  correspondence  is  returned  to  the  filing  department  it 
must  bear  a  signed  O.  K.  to  show  that  it  has  received  proper 
attention. 

Illustration  of  Subjects,  Unclassified 

To  illustrate  the  subjects  taken  as  a  basis  for  our  files, 
I  cite  ten,  the  first  thirty  out  of  the  approximately  250  sub- 
jects contained  in  the  files  wdthout  reference  to  the  numerous 
subdivisions  under  the  various  subjects : 

21.  Publications  and  reports  requested  by  Merchants'  Assn. 
22.  City  planning.  23.  Public  buildings.  24.  Streets  and  high- 
ways. 25.  Street  cleaning.  26.  Public  baths.  27.  Tree  plant- 
ing. 28.  Memorials  and  statues.  29.  Civic  center.  30.  Isles  of 
safety. 

You  will  observe  that  these  subjects  were  arbitrarily  as- 
signed their  numbers  without  reference  to  any  particular  clas- 
sification or  grouping  of  correlated  subjects.  Such  a  grouping 
is  not  necessary,  because  the  card  system  renders  the  file  read- 
ily accessible  no  matter  what  number  is  assigned  to  a  subject, 
while  new  subjects  can  always  be  added  at  the  end  without 
interfering  with  or  disarranging  the  position  of  the  subjects 
already  in  the  files. 

Illustration  of  Subjects  Classified 
In  the  Rochester  Chamber  of  Commerce,  however,  the  sub- 
jects have  been  grouped  or  classified  under  nine  main  divi- 
sions, as  follows: 

0.  General.  1.  Government.  2.  Civic  and  social  interests. 
3.  Finance.  4.  Organization.  5.  Rochester  Chamber.  6.  Com- 
merce and  industrv.    7.  Airriculture.    8.  Communication. 


FILING  SYSTEMS  FOR  CHAMBERS  OF  COMMERCE.  385 

All  subjects  relatin*^  to  the  first  division,  "general/'  which 
comprises  encyclopaedias,  directories,  books  of  reference,  gen- 
eral and  statistical  information,  etc.,  are  assigned  numbers 
ranging  from  0  to  99.  The  second  subject  is  assigned  numbers 
from  100  to  199,  and  each  one  of  the  nine  subjects  has  100  main 
numbers.  It  seems  to  me  to  be  only  a  question  of  time  when 
the  subjects  under  some  one  or  more  of  these  general  divi- 
sions will  reach  a  number  greater  than  the  100  numbers  as- 
signed to  it.  This  may  not  be  so  far  in  the  future  as  expected. 
When  that  point  is  reached  this  method  of  general  subdivision 
will  present  some  embarrassment  which  is  not  inherent  in  the 
plan  followed  by  The  Merchants'  Association. 

To  illustrate  the  system  in  the  Rochester  Chamber  with 
the  use  of  subdivisions  I  quote  a  brief  section  from  the  index 
of  the  Rochester  system. 

General  Division  No.  6  relates  to  commerce  and  industry 
and  is  therefore  assigned  the  numbers  between  600  and  699. 
Under  this  general  head  of  commerce  and  industry  comes  the 
well-knoA\Ti  subject  of  industrial  development,  which  is  as- 
signed Subject  No.  640,  and  related  subjects  are  numbered  be- 
tween 640  and  650.    The  schedule,  therefore,  is  as  follows : 

640.  Industrial  development. 

641.  Committee  organization. 
641.1.     Industrial  development. 

Sub-Com.,  alpha. 

642.  New  industries. 

643.  Committee  undertakings,  alpha. 

644.  Factory  sites. 

645.  Investment  and  investors.     (People  with  money  to  invest  in  busi- 

ness or  those  who  want  additional  capital.) 

646.  War  inventions  council. 

646.1.  Membership. 

646.2.  Minutes. 

646.3.  Inventions. 

647.  Real  Estate.     Includes  land  and  land  value. 

648.  Mercantile  agency  reports. 
649. 

In  conclusion  let  me  say  that  I  firmly  believe  the  subject 
basis  of  filing  used  in  connection  with  the  numeric  method  is 
the  best  for  any  commercial  organization,  no  matter  what  its 
size.  It  most  completely  applies  to  chamber  of  commerce 
equipment  the  five  requisites  or  principles  stated  in  the  begin- 
ning of  this  paper.  It  can  easily  and  simply  be  adapted  to  the 
smallest  organization  and  can  readily  be  expanded  to  meet  the 

14 


386  METHODS  OF  ORGANIZATION  AND  OPERATION. 

needs  of  any  association,  no  matter  how  large  it  becomes.  It 
is  my  opinion  that  in  determining  the  best  system  for  any 
particular  organization  it  is  wise  and  necessary  to  start  with 
or  to  adopt  as  early  as  possible  one  which  as  far  as  can  be  fore- 
teen  will  meet  all  conditions  during  the  life  of  that  organiza- 

ion.  A  straight  alphabetic  system  upon  the  name  basis  may 
l>e  adequate  for  a  small  organization  in  its  beginning,  but  just 

IS  surely  as  that  organization  grows  and  its  activities  increase 
vud  multiply,  it  will,  I  believe,  prove  to  be  inadequate.  There- 
'ore,  if  you  would  avoid  the  quicksands  of  chaotic  filing,  start 
(vath,  or  speedil^^  adopt  a  system  based  upon  the  principle  and 
constructed  under  the  method  which  is  easily  capable  of  ade- 
quate and  simple  expansion  to  meet  the  growth  of  your  organi- 
sation. 


PART  III. 

Qualifications  and  Self-Training 
of  Secretaries 


887 


CHAPTER  XX. 

The  Qualifications  and  Self-Training  of  the 
Secretary 

The  Qualifications  of  the  Secretary 
By  WILLIAM  GEORGE  BRUCE 

The  promotion  of  the  economic  and  civic  welfare  has  be- 
come the  distinctive  function  of  a  voluntary  body  of  business 
and  professional  men  in  every  enterprising  city  in  tlie  United 
States.  Time  and  experience  have  taught  that  certain  duties, 
in  achieving  the  ends  here  to  be  attained,  cannot  on  the  one 
hand  be  left  solely  to  individual  initiative,  nor  can  they  con- 
sistentl}^  be  delegated  to  the  local  governmental  authorities. 

They  must,  in  the  nature  of  things,  be  entrusted  into  the 
hands  of  the  collective  citizenship,  free  from  political  influ- 
ences and  class  prejudice,  competent  to  analyze  conditions  and 
prospects  and  apply  measures  and  departures  to  attain  desired 
ends. 

In  the  Formative  Stages 

The  modern  commercial  organization  is  still  in  the  forma- 
tive stages  of  its  development.  Its  scope  and  purpose,  plan  of 
construction  and  administrative  policy  are  gradually  being 
lifted  from  hazy  and  conflicting  conceptions  into  the  light  of 
clearly  defined  outlines  and  limitations.  Forces  which  have 
hitherto  slumbered  unconscious  of  the  unperformed  tasks  that 
lay  about  them  have  been  awakened  into  useful  action.  They 
have  become  living,  breathing  organisms,  have  assumed  definite 
form  and  identity  and  are  performing  the  task  which  falls  to 
them. 

Thus,  the  elements  w^hich  have  been  combined  for  the  pur- 
pose of  promoting  the  economic  and  civic  welfare  of  the  com- 
munity have  grown  into  a  fixed  institution  which,  within  its 
chosen  field,  must  lead  in  thought  and  action.  It  must  discover 
the  possibilities  for  material  and  civic  advancement,  focus 
public  attention  in  the  direction  of  laudable  projects  and 
crystallize  a  wholesome  sentiment  in  support  of  them. 

389 


390  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

While  maiiy  of  the  commercial  organizations  both  in  the 
larger  and  smaller  cities  have  a  definite  plan  and  scope,  and 
work  towards  prescribed  ends  and  purposes,  there  are  thou- 
sands of  organizations  whose  efforts  are  spasmodic  and  aim- 
less, and  who  lack  both  the  elements  of  permanency  and  effi- 
ciency. 

The  Seciretary  in  the  Making 

There  can  be  no  wide  difference  of  opinion  upon  the  claim 
that  the  secretary,  who  aims  to  serve  such  a  movement  or  body 
of  men  with  the  highest  degree  of  eff'iciency,  must  have 

First:  A  due  appreciation  of  the  function  and  mission  of 
a  commercial  organization ; 

Second:  An  exact  understanding  of  the  relation  he  bears 
to  the  organization,  its  board  of  directors,  to  the  executive  offi- 
cers and  committees,  to  the  membership  and  to  the  general 
public ; 

Third:  A  thorough  comprehension  of  the  requirements 
of  his  position  and  a  determination  to  equip  himself  to  meet 
these  requirements. 

But,  if  it  can  reasonably  be  held  that  the  commercial  or- 
ganization is  still  in  its  formative  stages  then  it  must  also  be 
conceded  that  the  commercial  secretary  is  still  in  the  making. 
While  the  general  mission  and  purpose  of  the  commercial  or- 
ganization has  been  fairly  understood  the  status  of  the  commer- 
cial executive  has  not  been  defined  with  any  degree  of  clearness. 
No  standards  have  been  fixed,  nor  have  any  definite  rules  been 
formulat^id  governing  his  qualifications  or  outlining  his  scope 
of  action. 

Men  have  hitherto  been  chosen  for  their  character,  vigor- 
ous manner  and  general  fund  of  information.  An  impressive 
and  genial  personality,  a  readiness  of  speech  and  a  perceptive 
and  receptive  mind  coupled  with  certain  experiences,  have  been 
the  generally  accepted  requisites  for  secretarial  positions. 

The  relations  which  the  secretary  bears  to  his  association, 
or,  more  properly  speaking,  to  his  board  of  directors  or  com- 
mittees, varies  considerably  and  is  governed  in  part  by  fixed  by- 
laws and  in  part  by  the  temper  and  mental  qualities  of  the  sev- 
eral factors  involved.  In  one  organization  the  secretary  is 
merely  the  record  keeper  of  the  office,  the  clerk  who  arranges 
for  meetings  and  who  keeps  the  minutes,  and  in  another  he  is 
the  accepted  leader  who  gives  both  inception  and  momentum 


THE  QUALIFICATIONS  OF  THE  SECRETAKY.  391 

to  association  effort.  In  the  one  the  board  reserves  to  itself 
both  the  initiative  and  the  executive  power,  while  in  the  other 
it  sits  in  a  legislative  or  judicial  capacity. 

While  there  are  variations  from  these  two  somewhat  ex- 
treme, or  at  least  highly  emphasized  opposite,  relations  be- 
tween secretaries  and  their  boards,  the  fact  remains  that  this 
relation  has  not  been  standardized  or  even  brought  to  a  general 
uniformity'  of  rule  or  understanding. 

Secretary  and  Board 

I  have  intimated  that  the  attitude  which  the  secretary 
bears  to  the  board  is  influenced  by  the  relative  mental  capac- 
ity of  the  two.  If  the  secretary  possesses  the  power  to  impress 
the  board  with  a  superior  grasp  of  the  problem  in  hand,  the 
facility  to  present  the  same  clearly  in  its  several  aspects,  and 
the  point  with  assurance  to  a  logical  solution,  he  will  assume  a 
larger  place  in  the  association  deliberations.  If  he  is  gifted 
Avitli  tact  and  judgment  he  will  secure  for  himself  a  wider  lati- 
tude and  authority.  If  he  proves  himself  the  intellectual  equal 
of  his  associates,  coupled  Avith  the  application  of  diplomacy  and 
skill  in  dealing  with  both  men  and  afifairs,  he  will  soon  become 
the  dominating  factor  of  his  organization. 

With  the  development  of  the  commercial  organization,  its 
purposes  coming  into  stronger  relief  and  its  activities  assum- 
ing definite  form  and  character,  it  logically  follows  that  the 
qualifications  of  the  commercial  executive  are  put  to  a  rela- 
tively stronger  test.  His  duties  will  become  more  exacting  and 
will  involve  to  a  greater  degree  that  intelligence  which  sees  op- 
portunities and  at  the  same  time  the  path  that  leads  to  their 
realization. 

The  secretary  must  be  the  storehouse  of  ideas,  innovations 
and  policies  and  must  exercise  that  discrimination  which  dis- 
tinguishes in  them  the  feasible  from  the  impossible  and  the 
substantial  from  the  trivial.  The  board  must  serve  as  the  final 
hopper  >N  hich  separates  the  grain  from  the  chaff. 

Action  and  Achievement 
The  impetus  which  has  been  given  to  commercial  organi- 
zations by  the  creation  of  the  Chamber  of  Commerce  of  the 
United  States  of  America  has  also  directed  attention  to  the  im- 
portance of  the  secretary  as  a  controlling  factor  in  promotional 


392  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

effort.  It  lias  done  more.  It  has  led  to  an  appreciation  of  the 
fact  that  an  organization  cannot  be  vigorous  and  effective  un- 
less the  secretary  be  energetic  and  efficient;  that  an  organiza- 
tion cannot  realize  its  highest  aspirations  unless  the  secretary 
be  a  man  of  originality,  of  action,  of  achievement. 

Some  one  may  here  suggest  that  a  strong  president  and 
board  will  eliminate  the  necessity  of  a  strong  secretary.  The 
answer  to  this  claim  is  that  the  average  business  and  profes- 
sional man  who  serves  on  a  board  or  a  committee  can  give  little 
or  no  time  outside  of  the  committee  meetings.  He  may  submit 
an  idea  or  suggestion  but  it  is  more  likely  that  he  expects  to 
deliberate  over  and  express  his  approval  or  disapproval  on  what 
has  been  planned  b}^  the  secretary  and  submitted  in  some 
tangible  form.  The  salaried  secretary  gives  his  sole  thought 
and  effort  and  his  entire  time  to  the  association  while  the  un- 
salaried director  is  expected  to  give  it  his  occasional  attention 
only.  The  latter,  therefore,  expects  merely  to  sit  in  judgment 
on  what  the  executive  officer  has  originated  and  devised.  I  may 
also  here  add  that  it  always  requires  a  strong  secretary  to 
reckon  with  a  weak  or  erratic  committee. 

A  Semi-Public  Character 

The  qualifications  sought  in  a  secretary  mil,  in  future, 
command  a  wider  range  and  will  be  subject  to  closer  scrutiny. 
His  status,  too,  will  be  more  clearly  defined.  His  office  which 
is  semi-public  in  character  will  be  subject  to  the  praise  or  con- 
demnation of  the  press  and  the  public,  the  association  members 
and  the  board. 

All  these  factors  will  not  only  seek  in  the  secretary  char- 
acter and  ability  in  an  ordinary  sense,  but  will  exact  expert 
knowledge  on  promotional  subjects  as  well  as  a  wide  range  of 
information.  The  day  of  the  dashing,  hurrah,  circus-style  sec- 
retary, the  man  who  talks  glibly  and  lacks  stability  of  charac- 
ter and  a  solid  education,  is  gone  by.  The  future  will  demand 
in  a  stronger  degree  a  thoughtful,  well-balanced  man,  who  by 
virtue  of  his  mental  equipment,  his  broad  vision  and  dynamic 
powers  can  meet  every  exigency  and  condition  and  command 
the  confidence  and  cooperation  of  his  associates. 

If  the  future  demands  a  higher  type  of  man  in  executive 
secretarial  duties,  looks  for  expert  knowledge  and  that  culture 
and  training  which  can  most  readily  be  gained  through  higher 


THE  QUALIFICATIONS  OF  THE  SECRETARY.  393 

institutions  of  learning,  then  the  position  will  be  elevated  into 
a  distinctive  profession. 

The  Promotional  Expert 

Nor  is  this  prospective  view  of  the  situation  an  unreason- 
able one.  The  demand  for  men  capable  of  assuming  the  man- 
agement of  commercial  bodies  is  constantly  growing.  With  it 
has  grown  the  demand  for  better  men  and  the  payment  of  bet- 
ter compensation.  Two  institutions  of  learning,  Harvard  Uni- 
versity and  the  University  of  Wisconsin,  are  inaugurating 
courses  for  commercial  secretaries,  which  embody  subjects  in 
political  economy,  civics,  sociology,  and  concrete  problems  in 
town  development.  The  young  men  thus  equipped  and  trained 
will  enter  upon  their  duties  Avith  an  understanding  of  the  funda- 
mentals in  promotional  effort  and  with  a  scientific  knowledge 
of  the  principles  that  must  govern  in  the  solution  of  all  local 
economic  and  civic  problems. 

Here  I  do  not  hold  that  the  secretary  of  the  future  must 
necessarily  be  a  college  graduate.  The  man  of  native  ability 
and  resourcefulness  will  here  assert  himself  just  as  he  does  now 
in  the  commercial  and  industrial  field. 

In  outlining  the  future  am  I  predicting  too  much?  Am  I 
setting  standards  which  are  too  high  and  therefore  unattain- 
able? Will  the  commercial  organization  of  the  future  exact 
high  and  well  defined  qualifications? 

I  am  firmly  convinced  I  have  not  aimed  too  high  in  my  pre- 
dictions or  that  I  have  fixed  unattainable  standards.  The  day 
of  the  expert  has  arrived.  With  the  advancement  in  all  lines 
of  human  endeavor,  with  the  constantly  increasing  demand  for 
greater  efficiency  in  the  channels  of  trade  and  commerce,  in 
agriculture  and  transportation,  in  government  and  education 
there  will  come  also  greater  concentration  and  efficiency  in 
community  advancement.  Collective  effort  must  find  its  lead- 
ership in  men  who  are  big  of  heart,  of  mind  and  of  vision.  It 
must  find  its  best  expression  in  that  community  progress  which 
recognizes  both  the  material  and  the  ideal.  In  the  assembling 
of  community  forces,  in  the  collation  of  ideas  and  efforts,  in 
lending  direction  towards  the  achievement  of  desirable  ends, 
there  must  be  the  calm  head  and  firm  hand  of  the  expert  execu- 
tive. 


394  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

A  Summary  of  the  Several  Functions 
First :    Tlie  mission  and  function  of  the  commercial  organi- 
zation. 

Second :    The  qualifications  of  the  commercial  secretary. 
Third:     The  relations  between  secretary  and  the  organi- 
zation. 

1.  The  Organization. 

(a)  The  aim  and  object  of  the  commercial  organization  is 
to  foster,  protect  and  advance  the  commercial,  industrial  and 
civic  interests  of  the  community. 

(b)  To  bring  the  advantages  of  geographic  location,  top- 
ography and  environment  to  their  highest  stage  of  development, 
utility  and  attractiveness. 

(c)  Prompt  progressive  thought  and  action  in  all  that 
will  make  for  an  enlightened,  contented  and  prosperous  com- 
munity. 

2.  The  Essentials  of  a  Commercial  Secretary. 

(a)  He  must  be  a  man  of  character,  of  moral  force,  and 
endowed  with  a  strong  human  sympathy. 

(b)  He  must  possess  a  liberal  education,  the  power  of  ex- 
pression in  speech  and  in  manuscript,  and  a  fund  of  informa- 
tion along  practical  lines. 

(c)  He  must  be  grounded  in  the  principles  governing 
economics,  political  economy,  civics  and  sociology. 

3.  Relation  Between  Secretary  and  Board. 

(a)  In  the  main  the  function  of  the  board  is  legislative 
and  judicial,  while  that  of  the  secretary  should  be  executive  and 
administrative. 

(b)  The  board  deals  with  questions  involving  policies 
and  expenditures  and  all  new  departures,  innovations  and  un- 
dertakings.   It  deliberates,  determines  and  decides. 

(c)  The  secretary  originates,  initiates,  devises  and  recom- 
mends and  becomes  the  administrative  right  arm  which  carries 
conclusions  and  instructions  of  the  board  into  execution. 

Here  it  also  logically  follows  that  the  prerogatives  and 
authority  of  the  executive  will  become  more  clearly  defined  and 
expressed.  He  will  stand  in  a  relation  to  his  board  similar  to 
that  of  the  superintendent  of  schools  to  the  school  board.    He 


THE  QUALIFICATIONS  OF  THE  SECRETARY.  395 

will  be  the  promotional  expert  and  g;eneral  executive  just  as 
the  school  superintendent  is  the  educational  expert  and  general 
administrator  of  the  school  system.  In  prestige  and  as  a  useful 
factor  in  the  life,  efforts  and  tendencies  of  tlie  committee  his 
position  will  be  similar  to  that  of  the  mayor  of  the  city.  While 
he  will  be  less  assertive  in  the  eyes  of  the  i)ublic,  he  will,  never- 
theless, be  the  most  forceful  n()n-])olitical,  non-partisiin  leader 
in  all  movements  making  for  material  progress  and  civic  and 
social  betterment. 

He  will  l;e  the  receptacle  for  the  best  thought  and  impulse 
of  his  community,  the  fountain  from  which  springs  that  pride 
and  patriotism  which  stimulates  loyal  citizenship;  the  loyal 
warrior  who  constantly  seeks  to  realize  its  fondest  hopes,  its 
highest  ambitions  and  its  noblest  aspirations. 


>X^*M    >     -: 


CHAPTER  XXI. 
The  Most  Helpful  Secretarial  Literature 

By  ROLAND  B.  WOODWARD 

This  paper  can  he  only  snggestive.  Bnt  in  order  that  it  may 
contain  snggestions,  we  must  inquire  what  the  secretary  would 
or  should  like  to  be  helped  to  do.  What  constitutes  an  ideal 
secretary — wliat  is  he  engaged  to  do?  The  answer  to  that  ques- 
tion is  as  varied  as  the  men  liere  and  the  communities  irom 
which  they  come. 

It  is  simple  and  sure  that  a  man,  in  order  to  play  an  im- 
portant part  as  an  efficient  secretary,  in  sliaping  the  develop- 
ment and  work  of  his  organization,  should  know  the  resources 
of  his  community — namely,  its  raw  materials,  its  wealth  and  its 
people.  From  tliese  must  be  produced  oi'  utilized  its  opportuni- 
ties. But  he  must  do  more  than  have  a  knowledge  of  its  re- 
sources. He  must  know  how  to  guide  and  inspire  its  people 
(especially  those  in  his  own  organization)  to  use  the  commu- 
nity's resources. 

To  get  out  of  every  member  of  the  community,  through  or- 
ganized effort,  the  best  that  is  in  him  for  the  benefit  of  the  whole 
community,  that's  the  secretary's  job;  to  guide  the  units  in  a 
community  in  working  together  for  the  community  good;  to 
direct  those  efforts,  and  manipulate  those  units,  so  as  to  achieve 
the  best  results  with  the  available  materials,  money  and  men. 

A  man  cannot  know  and  continue  to  know;  he  cannot  in- 
spire and  continue  to  inspire  without  feeding  his  mind  and  h^*s 
spirit.  The  better  his  preparation  for  his  difficult  task  the  more 
he  desires  to  keep  open  the  sources  of  knowledge  and  of  poAver ; 
the  poorer  his  prei)aration,  the  more  he  needs  to  open  up  or  to 
keep  open  the  sources  of  knowledge  and  power. 

The  secretary's  work,  to  aid  him  in  doing  Avhich  he  requires 
"helpful  secretarial  literature,"  is,  therefore,  fourfold : 

1st.  A  perpetual  vision  of  the  ideal  conditions  and  human 
relations  Avhich  he  covets  for  his  community ; 

2nd.  A  knowledge  of  Avhether — and  how — such  ideals 
have  been  realized  or  are  being  realized  in  other  times  or  places; 

396 


THE  MOST  HELPFUL  SECRETARIAL  LITERATURE.  397 

of  the  diiriculties  met  and  oveicoine ;  of  the  difficulties  that  have 
proved  insurmountable — and  why!  Of  available  instruments 
for  carving  out  his  "ideal"  and  knowledge  of  how  to  use  them. 

3rd.  Mental  processes  that  will  devise  ways  and  means 
where  there  is  no  precedent  to  point  the  way. 

4th.  Wisdom  and  persistence  to  direct  the  human  element : 
a  genuine  love  of  his  fellow-men  to  enable  him  to  work  in  har- 
mony with  them  and  to  inspire  them  to  work  harmoniously 
with  one  another. 

Reading  as  a  Helpful  Factor 

It  is  to  "make  good"  on  this  "job"  that  the  secretary  needs 
help;  and  making  good  is  infinitely  more  than  merely  satisfy- 
ing his  employers.  The  necessary  equipment  for  the  man  under- 
taking this  "job"  comes  from  various  sources,  of  which  reading 
is  one.  In  discussing  this  one,  I  do  not  for  a  moment  belittle 
the  others,  some  of  which  are:  inherent  qualities;  early  train- 
ing and  environment;  physical  condition;  experience;  the  ex- 
perience of  others — either  seen  at  first  hand — as  one  does  in 
traveling,  or  heard  of  by  w  ord  of  mouth ;  personal  contact  with 
inspiring  personalities;  educational  equipment  before  under- 
taking this  w  ork,  and  not  planned  with  an  eye  to  it. 

Measure  up  these  three — size  and  quality  of  the  job,  the 
necessary  equipment,  and  the  sources  from  w^hicb  it  is  obtained 
— and  you  see  that  each  item  of  equipment  can  be  improved  or 
added  to  by  reading.  Nor  does  the  importance  of  reading  as  a 
source  of  equipment  minimize  in  any  way  the  importance  of 
the  other  sources,  any  more  than  the  value  of  intelligence  mini- 
mizes the  importance  of  education,  or  the  value  of  our  sense  of 
hearing  minimizes  the  value  of  sight. 

It  is  evident  that  altogether  different  kinds  of  reading  are 
required  to  perfect  the  various  kinds  of  equipment,  and  that 
in  some  cases,  it  is  more  necessary  than  in  others. 

In  order  that  my  suggestion  might  be  based  on  others'  ex- 
perience and  opinions  as  well  as  on  my  own,  I  sent  to  fifty  or 
sixty  secretaries  a  questionaire  which  was  supposed  to  be  built 
on  the  principles  of  a  nut-cracker,  that  is,  I  hoped  it  would  ex- 
pose all  the  "meat"  of  the  matter. 

Two  things  w^hich  it  exposed  quite  clearly  were  a  difference 
of  opinion  on  some  points  and  a  lack  of  opinion  on  others ;  thus 
forming  a  basis  for  discussion,  if  not  for  conclusions.  One  con- 
clusion, however,  is  unavoidable — that  there  is  great  need  for 


398  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

systematic  winnowing,  in  order  that  the  secretary  may  concen- 
trate his  reading  effort  on  the  things  which  he  needs  and  not 
fiddle  it  away  in  a  confused  mass  of  irrelevant  and  uninspiring 
matter. 

Vision  and  Enthusiasm 

Because  of  the  ^'vision/'  the  ever-present  picture  in  the  sec- 
retary's mind  of  the  ideal  to  which  his  community  should  aspire, 
is  the  first  essential  in  the  secretary's  equipment,  I  shall  take 
up  first  those  questions  which  bear  on  this.  Among  my  ques- 
tions were  these : 

"To  what  extent  do  you  rely  upon  reading  to  sustain  your 
enthusiasm?" 

"Upon  what  kind  of  literature  can  you  rely  for  inspira- 
tion?" 

"What  kind  of  literature  is  most  apt  to  enlarge  your  vision, 
to  increase  your  desire  to  accomplish?  Increase  consciousness 
of  ability  to  accomplish?" 

Judging  by  the  responses,  the  consensus  of  opinion  appears 
to  be  that  one  accidentally  "happens  upon"  inspiring  articles. 
Of  those  who  specified  certain  kinds  of  reading  for  this  purpose, 
at  least  two-thirds  referred  to  such  literature  as  furnishes  ac- 
counts of  things  now  in  process  of  accomplishment,  such  as  pub- 
lications of  commercial  organizations,  Town  Development,  The 
American  City,  The  Nation's  Business. 

Knowledge 

So  much  for  the  vision !  How  about  the  knowledge !  The 
knowledge  of  what  industries  have  the  best  opportunity  to  thrive 
in  our  locality ;  of  which  can  be  made  to  thrive  that  do  not  now ; 
of  how  all  local  resources  can  be  utilized  for  the  community's 
greatest  profit;  knowledge  of  how  to  give  the  citizens  the  best 
opportunity  to  develop  themselves,  how  to  conserve  their  health, 
their  property ;  knowledge  of  which  other  communities  are  fac- 
ing our  own  problems — and  how  they  are  solving  them ;  knowl- 
edge of  the  effects  of  indifference  as  well  as  of  the  benefits  to  be 
reaped  from  an  awakened  public  interest;  knowledge  of  the 
character  of  soil  in  which  will  thrive  the  plant  of  civic  right- 
eousness and  the  common  good ;  knowledge  of  how  our  own  com- 
munity can  best  play  its  part  as  a  fraction  of  the  whole  nation ; 
knowledge  of  how  "to  promote  commerce  and  industry,"  by  pro- 


THE  MOST  HELPFUL  SECRETARIAL  LITERATURE.  399 

tecting  it  from  unfair  and  hampering  laws;  how  to  prevent  ac- 
cidents in  shops,  on  the  street,  and  in  the  home ;  how  to  prevent 
waste  of  life  and  of  property  by  fire ;  how  to  cooperate  for  bet- 
ter industrial  and  commercial  training  for  those  who  work  with 
us  in  store,  office  and  factory;  how  to  improve  the  transporta- 
tion facilities,  which  bring  people  to  us  and  carry  our  products 
to  them ;  how  to  abate  smoke  and  other  nuisances ;  how  to  apply 
arbitration  so  as  to  reduce  business  friction ;  how  to  utilize  our 
unused  assets — the  power  of  our  rivers,  the  possibilities  of  our 
lakes,  for  pleasure  and  for  business ;  how  to  extend  our  acquain- 
tance and  influence  by  bringing  to  our  community  groups  of 
people  in  their  conventions ;  how  to  cooperate  with  every  village 
and  city  in  the  community  in  the  solution  of  its  problems. 

Now,  here  are  the  questions  I  asked  in  order  to  find  out  to 
what  reading  commercial  organization  secretaries  look  for  the 
necessary  information  to  accomplish  these  things : 

"To  what  extent  do  you  rely  upon  reading  to  sustain  such 
knowledge  of  current  events  as  is  necessary  for  your  work?" 

"Cite  instances  of  direct  connection  between  what  you  have 
read,  and  new  activities  planned,  undertaken  or  accomplished." 

"Where  do  you  find  the  most  complete,  or  most  reliable 
information  as  to  what  other  cities  are  accomplishing  in : 

A.  Increasing  number  or  size  of  their  industries? 

B.  Increasing  volume  of  their  retail  and  wholesale  busi- 

ness? 

C.  Keeping  their  name  favorably  before  the  public? 

D.  Obtaining  and  keeping  good  transportation  facilities? 

E.  Utilizing  available  power? 

F.  Making  their  city  desirable  residentially  by  increasing 

educational  facilities ;  improving  sanitary  conditions, 
civic  and  public  morality,  quality  and  quantity  of 
amusements,  community  spirit,  beauty    of    streets, 
buildings  and  parks;  establishing  playgrounds." 
The  only  noticeable  difference  in  the  replies  is  that  some  few 
secretaries — or  so  one  would  judge  from  their  replies — indulge 
in  no  reading  but  that  of  the  daily  newspapers.    With  the  ex- 
ception of  those  whose  Bible  is  the  newspaper,  there  is,  except 
in  the  estimated  importance  of  the  reading  matter  mentioned, 
a  striking  oneness  of  experience  and  opinion. 

All  appear  to  look  to  commercial  organization  reports,  The 
Nation's  Business,  Government  Reports,.  The  American  City, 


400  QUAI.IFICATIONS  AND  TRAINING  OF  SECRETARIES. 

Town  Development,  The  Municipal  Keview  and  local  New  York 
newspapers,  reports  of  city  planning  conferences. 

Other  sources  mentioned,  but  by  fewer,  are  Fire  Prevention^ 
News,  publications  of  the  New  York  Bureau  of  Municipal  Re- 
search, Municipal  Engineering,  World's  Work,  Literary  Di- 
gest, Continental  new^spapers,  City  Traffic  Journals,  Housing, 
Conventions'  Reports,  Architectural  and  Building  Journals, 
Outlook,  Advertising  and  Selling,  Printer's  Ink,  The  Era,  The 
Survey,  Special  Reports  of  The  Alexander  Hamilton  Institute, 
Editor  and  Publisher,  The  Independent,  The  Proceedings  of  the 
Secretary's  Association. 

The  Flood  of  Printed  Matter 
This  brings  me  to  a  plaint  made  by  practically  all,  with 
some  suggested  solutions  of  the  problem  concerned : 
I  cannot  read  everything  that  comes  in ;  and 

I  do  not  see  nearly  all  the  valuable  reading  matter  which  is  mailed  to  me. 
I  do  not  see  one  of  ten  of  the  pamphlets  that  come  to  my  desk. 
Much  of  the  best  mail  never  reaches  my  eye. 

The  man  in  the  large  office,  with  a  corp  of  assistants  often 
does  not  see  much  of  which  would  interest  him  most  deeply, 
while  the  secretary  of  the  smaller  organization,  the  one  who, 
so  far  as  the  office  is  concerned,  is  playing  a  "lone  hand,"  natu- 
rally canliot  read  everything  that  comes  in. 

Both  feel  that  a  winnowing  machine  is  needed,  to  auto- 
matically throw^  out  the  chaff  and  save  the  wheat.  While  almost 
all  experience  this  need,  comparatively  few  have  systematically 
attacked  the  problem. 

Here  are  a  few  who  have : 

I  have  an  office  arrangement  whereby  various  members  of  the  staff  are 
requested  to  clip  out  items  of  interest  in  any  and  all  publications  that  come  to 
the  office ;  these  are  pasted  on  cards,  and  come  to  my  desk  before  going  to  the 
files. 

I  now  have  regularly  upon  my  desk  the  editions  of  fifteen  house  organs 
which  seem  to  be  of  the  greatest  value,  and  a  member  of  the  staff  glances 
through  all — giving  to  the  different  men  in  the  office  such  articles  as  may  be- 
of  special  interest  to  the  departments  of  which  they  are  in  charge. 

I  maintain  a  scrap-book  containing  clippings  from  commercial  organiza- 
tion publications  and  other  sources  calling  attention  to  activities  that  seem  to 
me  to  have  merit. 

One  of  my  stenographers  looks  over  and  marks  the  morning  papers  for 
me,  and  another  gives  attention  to  the  evening  papers,  and  still  another  gives 
attention  to  the  various  weekly  and  monthly  magazines.  The  assistant  who 
discovers  Something  of  particular  importance  to  this  office  or  to  myself  im- 


THE  MOST  HELPP^UL  SECRETARIAL  LITERATURE.  401 

mediately  calls  my  attention  to  it.    I  try  to  look  over  the  headlines  of  every- 
thing marked  each  day — though  often  I  do  not  succeed.  ^ 

In  my  own  office  I  am  now  trying  a  new  sifting  arrange- 
ment. Each  member  of  the  staff  is  asked  to  mark  anything 
which  he  thinks  would  especially  interest  the  secretary,  to  at- 
tach a  memo  thereto,  giving  the  number  of  the  pages  on  which 
the  notations  have  been  made,  and  to  place  it  upon  my  desk. 
In  this  way  the  secretary  gets,  with  the  minimum  expenditure 
of  time,  the  maximum  of  real  nuggets.  Many  books  and 
pamphlets  which  heretofore  I  would  have  felt  it  necessary  to 
look  through  myself,  I  now  send  to  a  member  of  the  staff  who 
afterwards  returns  it  marked  in  such  a  way  that  I  can  in  two 
or  three  minutes  get  all  the  meat  there  is  in  it  for  me. 

The  file  clerk  also,  before  filing  articles  clipped  by  any 
member  of  the  staff — the  initial  on  the  article  shows  who  sent 
it  to  the  files — passes  such  articles  to  any  other  member  of  the 
staff  whom  she  knows  it  would  interest. 

We  not  only  have  the  local  papers  marked,  but  clipped  and 
pasted,  so  that  everything  on  a  given  subject  can  be  kept  togeth- 
er. This  arrangement  which  has  been  in  effect  for  several  dec- 
ades, we  consider  the  only  practical  method  of  handling  that 
which  concerns  or  interests  the  organization,  in  the  local  news- 
papers. 

Educational  Equipment — Reference  Matter 

My  questionaire  did  not  concern  itself  with  what  should 
constitute  the  standing  reference  library  of  a  commercial  or- 
ganization, or  A^ith  what  should  be  a  secretary's  preparation 
for  secretarial  duties.  Among  the  responses,  however,  these 
points  were  touched,  and  some  indicated  such  serious  thought 
and  analysis.  I  shall  quote  from  a  letter  by  William  George 
Bruce : 

The  modern  commercial  secretary,  in  order  to  exert  the  necessary  influ 
ence  and  command  leadership,  must  be  the  intellectual  equal  of  his  associ- 
ates. He  must  primarily  be  a  well  informed  man  on  all  current  events  in 
the  economic  and  civic  life  of  the  community,  the  state  and  the  nation.  His 
general  educational  qualifications  must  be  sufficiently  high  to  enable  him  to 
estimate  the  meaning  and  value  of  tendencies  and  departures  in  the  industrial, 
commercial  and  political  movements  of  the  day. 

While  he  cannot  be  expected  to  be  a  student  of  every  subject,  or  an  ex- 
I>ert  on  every  problem,  he  can  have  such  general  information  at  his  command 
as  will  enable  him  to  point  out  the  purpose  or  meaning  of  this  or  that  effort 
and  to  secure  the  specific  information  upon  it  when  desired  or  required.  In 
that  capacity  he  becomes  a  general  factotum,  a  sort  of  clearing  house,  for 
that  information  which  may  serve  the  interest  or  purpose  of  his  organization. 


402  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

The  literature  with  which  a  commercial  secretary  should  familiarize 
himself  may  be  divided  into  what  I  would  term  ttie  cultural  and  the  vocation- 
al. The  one  makes  for  a  grasp  of  fundamentals,  the  other  of  current  equip- 
ment. 

The.  Cultural  Studies.  In  order  to  lay  an  educational  basis  the  secretary 
should  be  familiar  with  one  or  more  standard  books  on  economics,  political 
economy,  civics  and  sociology.  The  governing  principles  in  commerce,  finance 
and  transportation.  The  principles  of  government  and  fundamentals  in  sociol- 
ogy should  be  within  the  grasp  of  every  secretary.  Any  of  the  standard 
text  books  in  these  branches  of  studies  will  serve  the  purpose. 

The  Vocational  Studies. 

He  should  be  familiar  with : 

The  Workman's  Compensation  Act  of  his  State. 

The  Federal  Reserve  Board  and  the  Currency  Act. 

The  Power  and  Scope  of  the  Interstate  Commerce  Commission. 

The  Federal  Trade  Commission,  its  Scope  and  Powers. 

The  Foreign  Trade  situation,  and  the  best  thought  on  Foreign  Trade  Pro- 
motion. 

War  Tax  Laws,  and  National  Income  Tax. 

The  Power  and  Function  of  the  State  Public  Utility  Commission. 

The  leading  measures  before  the  citj-  council,  county  board,  state  legis- 
lature, and  national  congress. 

Regarding  books  that  should  be  at  every  secretary's  hand 
for  ready  reference  the  following  have  been  mentioned : 

Lists  of  City,  County,  State  and  Federal  Government  Officials. 

Important  Government  Reports. 

Local  Tax,  Water,  Gas  and  Electric  rates. 

Classified  lists  of  local  business  houses  and  manufacturers. 

Congressional  Directory. 

While  I  shall  not  attempt  to  go  into  this  exhaustively, 
since  it  is  not  strictly  speaking  "reading  matter" — few  people 
would  sit  down  to  enjoy  an  hour  reading  local  tax  rates  or  lists 
of  officials,  I  will  say  that  to  the  lists  of  books  kept  for  immedi- 
ate reference  should  be  added : 

Telephone  directories  of  the  principal  cities. 

National  and  international  trade  directories. 

The  "World's  Almanac." 

The  best  Atlases  obtainable. 

Commercial  organization  annual  reports. 

Annual  reports  of  important  local,  state  and  national  organizations ;  sucb, 
for  example,  as  tlie  National  Association  for  the  Promotion  of  Industrial 
Education ;  National  Housing  Conference ;  American  Public  Health  Associa- 
tion. 

The  question  of  what  should  constitute  a  commercial  or- 
ganization reference  library  is  simple  beside  the  question  of 
what  a  secretary  should  read  to  keep  himself  posted  with  such 


THE  MOST  HEI^PFLL  SEl'RETARIAL  LITERATURE.  403 

information  as  he  can  make  use  of  in  directing  the  activities  of 
the  organization;  and  this,  in  turn,  is  simple  in  comparison 
\nth  the  other  question,  as  to  what  reading  is  going  to  give 
each  individual  man  the  best  boost  in  vision,  enthusiasm,  ten- 
acity of  purpose,  perseverance  and  single-mindedness. 

We  have  seen  that  certain  sources  are  recognized  as  fur- 
nishing necessary  information  required,  but  that  some  of  these 
are  recognized  as  yielding  a  higher  percentage  of  information 
than  others ;  also  that  the  percentage  of  yield  of  some  of  these 
sources  can  be  increased. 

Studying  this  phase  of  this  subject  has  *led  me  to  ask 
whether  it  would  not  be  possible,  in  order  to  place  the  experi- 
ence of  others  at  our  disposal  with  the  minimum  of  trouble  to 
one's  brother  secretaries,  to  compile  annually  an  index  of  the 
activities  engaged  in  the  previous  twelve  months  by  commercial 
organizations?  Then,  when  one  of  us  wants  to  profit  from  the 
experience  of  the  other  fellow  in  any  particular  direction  he 
\vi\\  know  to  whom  to  address  his  inquiry,  and  will  not,  in  find- 
ing the  information  he  wants,  ask  twenty  secretaries  who  have 
no  information  to  give  him ;  nor  will  he  skip  the  very  one  who 
could  tell  him  most.  He  will  know  into  whose  annual  report 
to  look  for  what  he  wants.  Such  a  yearly  index  of  commercial 
organization  activities  would  make  it  possible  for  us  to  find 
what  we  want  when  we  want  it,  thus  saving  our  time  and  mak- 
ing it  possible  to  spend  more  of  it  on  cultural  or  inspirational 
literature. 

Inspirational  Factors  Neglected 

When  we  come  to  this  phase  of  the  subject,  there  is  no  es- 
caping the  deduction  that  as  a  class,  we  often  subsist  on  prison 
fare  when  we  need,  and  can  have  for  the  mere  exertion  of  reach- 
ing forth,  ambrosia  and  nectar  of  the  gods. 

One  man  quotes  Lord  Bacon:  "Reading  maketh  a  full 
man ;  writing  an  exact  man,  and  conference  a  ready  man" — 
and  nothing  is  more  sure  than  that  we  \Nillfully  impoverish  our- 
selves when  we  might  choose  fulness  of  life  if  we  neglect  to  ap- 
propriate the  riches  that  are  ours  for  the  taking. 

WTiat  if  we  do  find  that  inherent  qualities,  physical  condi- 
tion, companionship  with  inspiring  personalities,  the  need  of 
our  own  community,  and  the  knowledge  of  what  other  commu- 
nities are  doing,  inspire  us  with  ideals  of  what  we  covet  for  our 


404  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

own  community,  is  that  any  reason  why  we  should  rest  with 
self-satisfied  complacency  at  this  point? 

When  one  considers  what  a  small  number  of  the  inspiring 
personalities  and  great  achievers  of  all  time  are  alive  today,  it 
scarcely  seems  possible  that  any  one  should  deliberately  con- 
fine himself  to  the  study -and  contemplation  of  his  contempor- 
aries. Musicians  do  not  drop  the  study  of  Bach,  of  Wagner  or 
Beethoven  because  these  are  no  longer  with  us  in  body ;  artists 
do  not  drop  the  study  of  the  methods  or  the  finished  product  of 
Turner,  Michael  Angelo  or  Rembrandt  because  they  cannot 
meet  them  face  to  face.  And  just  as  it  can  be  said  of  men  whom 
Ave  pronounce  great  because  of  their  achievements  in  art  or 
music,  so  it  can  be  said  of  many  a  one  great  because  of  his 
achievements  in  other  directions — in  those  directions  in  which 
we  ourselves  are  working — that  "He  being  dead,  yet  speaketh," 
Are  we  then  going  to  close  our  ears  to  their  spoken  message 
as  well  as  to  the  message  of  their  methods  and  achievements 
simply  because  other  messages  come  to  us  from  men  with  whom 
we  can  shake  hands  and  who  can  grace  our  banquet  tables? 

Nor  only  does  the  reading  of  what,  for  lack  of  a  better  term, 
I  shall  call  inspirational  literature,  enrich  the  reader,  but  it 
undoubtedly  increases  his  capacity  to  profit  from  all  other  cur- 
rent sources  of  inspiration,  such  as  travel,  companionship  of 
great  men,  observation,  experience. 

Is  it  not  possible  that  there  is  a  lack  of  inclination  to  exert 
one's  self  mentally  when  one  is  not  obliged  to  and  does  not  an- 
ticipate any  direct,  concrete  result?  Emerson  says:  "Every 
man  is  as  lazy  as  he  dares  to  be." 

But  looking  merely  at  what  we  can  get  is  like  looking  at  one 
side  of  a  building ;  the  other  side,  what  we  can  give,  is  equally 
important.  A  secretary  gets  to  give !  At  least  he  should  "Get 
to  give."  Sometimes,  however,  he  "forgets  to  give."  If  he 
needs  vision,  inspiration,  ideals,  to  do  that  which  he  is  paid  him 
to  do,  how  much  more  do  the  members  of  the  organization  re- 
quire them  to  do  that  for  which  they  are  not  paid.  A  secretary 
needs  to  make  himself  "All  things  to  all  men."  No  man  can  be 
that  without  filling  in  what  Nature  and  previous  education  have 
left  lacking. 

Necessity  for  Selecting 

Here  we  come  again  to  the  necessity  for  selecting.  No 
two  men  are  lacking  in  precisely  the  same  directions;  each  man 


THE  MOST  HELPFUL  SECRETARIAL  LITERATURE.  405 

must  analyze  himself  to  discover  his  needs,  before  he  can  intelli- 
gently search  for  the  material  to  supply  that  lack.  Each  one  of 
us  must  find  how  to  supply  that  lack  in  his  own  nature,  educa- 
tion and  experience  which  will  enable  him  to  meet  every  man 
on  some  common  ground ;  wliich  will  enable  him  to  give  to  every 
nmn  he  meets  something  that  man  needs  or  wants.  Only  in 
this  way  can  lie  have  that  sympathy  with,  and  insight  into,  all 
natures  wliich  will  make  it  possible  to  get  the  best  service  to 
the  community  out  of  all. 

I  have  one  clear  impression  from  all  this  inquiring — the 
successful  nmn  reads  and  reads  things  that  have  permanence. 

Did  you  last  year  read  and  love  a  great  book?  Have  you 
made  gTcat  books  your  friends?  All  great  leaders  have  been 
men  of  vision — men  of  vision,  not  visionaries.  There  are  more 
men  of  vision  in  the  village  library  than  in  the  halls  of  Congress. 
Cultivate  them,  for  in  their  silent  pages  you  Avill  find  knowl- 
edge, inspiration,  refreshment  and  fulneSvS  of  life. 


Literature  Suggested 

By  Roland  B.  Wooflward :  "The  conference  on  'Helpful  Secretarj'  Lit- 
erature.' throujrli  the  courte.^y  of  Professors  .Jones,  Alhert  and  Cherin.srton, 
.suf?gest  for  Immediate  use  of  secretaries  the  following  l)ooks,  most  of  which 
can  be  found  in  any  public  library : 

1.  Harrington  Emerson.  The  Twelve  Principles  of  Efficiency. 

2.  F.  W.  Taylor,  The  Principles  of  Scientific  Management. 

3.  F.  C.  Howe,  The  Modern  City. 

4.  Richard  T.  Ely,  Outlines  of  Economics. 

5.  Jenks  and  Laucks,  The  Immigration  Problem. 

6.  H.  M.  Hurd,  Principles  of  Real  Estate  Valuation. 

7.  T.  N.  Carver,  Rural  Economics. 

8.  II.  A.  Toulmin,  The  City  Manager. 

9.  Bulletin  of  Columbia   University,   Studies   in   History  and   Political 

Science.     Scientific  Management. 

By  Prof.  Edward  D.  .Jones  (University  of  Michigan)  :  In  the  literature 
of  administration  there  is,  first  of  all,  biography,  which  is  infinite  in  amount, 
from  ancient  Plutarch  to  modern  Bradford,  writing  of  Lee,  The  American, 
and  varying  in  quality  from  the  stern  stuff  which  came  from  under  the  heavy 
hand  of  Carlyle  to  the  light  workmanship  of  Sainte-Beuve.  For  the  study 
of  benevolent  tyrants  there  are  Mommsen's  chapter  on  Sulla  and  Julius 
Caesar.  For  tenacity  of  purpose  there  is  Thayer's  Cavour.  It  is  well  to  seek 
out  the  great  analyzers  of  human  motives,  such  -as  Samuel  Johnson,  Bacon, 
Bulwer.  Goethe  and  Emerson. 


406  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

The  philosophy  of  joint  action  may  be  found  in  the  wisdom  literature, 
extending  from  Proverbs  to  Bacon's  Essays.  There  is  much  of  it  in  such 
maxim  writers  as  La  Rochefoucauld,  as  well  as  in  the  pungent  para- 
graphs of  Goethe.  Besides  these,  there  are  pertinent  treatises  by  lesser 
men  not  to  be  overlooked,  such  as  John  Foster's  Decision  of  Character  and 
Sir  Arthur  Help's  Essays. 

Military  science  deserves  careful  attention  as  the  most  highly  developed 
branch  of  the  art  of  handling  men.  The  great  work  in  this  field  is  that  of 
General  Karl  von  Claucewitz,  the  Father  of  German  Strategy.  It  bears  the 
simple  title  On  War.  Especially  attractive  and  penetrating  among  recent 
works  is  Col.  Vache^'s  Napoleon  at  Work. 

To  offset  a  possible  influence  of  harshness  emanating  from  the  literature 
of  the  science  of  war  one  should  study  the  relation  of  industry  to  the  uni- 
versal hunger  of  the  human  heart  for  what  is  beautiful.  Here  two  names 
suggest  themselves  to  us  at  once:     John  Ruskin  and  William  Morris. 

In  conclusion,  and  with  all  due  humility,  perhaps  I  may  be  permitted  to 
refer  to  a  work  of  my  own  entitled,  The  Business  Administrator ;  His  Models 
in  War,  Statecraft  and  Science,  in  which  an  attem.pt  has  been  made  to 
draw  suggestions  from  the  history  of  the  great  forms  of  administration  to 
bear  upon  the  question,  what  is  the  ideal  conception  as  to  what  a  business 
leader  should  be  in  America  today. 

This  list,  which  may  seem  very  forbidding,  in  reality  has  to  do  with  books 
which  are  charming,  and  written,  for  the  most  part,  by  great  men,  whose 
characters  make  a  deep  impression  upon  one  who  earnestly  seeks  to  become 
acquainted.  To  enjoy  the  best  literature  is  to  acquire  a  habit.  A  habit  is 
only  slowly  acquired.  To  acquire  the  habit  of  reading  good  books  two 
things  are  essential,  first,  not  to  undertake  too  much.  It  is  more  reasonable 
to  undertake  to  read  a  certain  kind  of  books  fifteen  minutes  a  day  than  to 
ambitiously  plan  for  solid  evenings  of  reading  and  then  throw  over  the  effort 
after  a  few  trials.  Second,  having  formed  a  program  of  reading,  to  do  the 
assigned  amount  daily,  and  without  fail,  until  the  o.d  habits  are  readjusted 
and  the  new  habit  is  firmly  fixed.  Only  then  can  one  permit  himself  post- 
ponements and  exceptions. 

Plutarch,  Lives,  Boston,  30O2;  Political  Precepts,  Boston  1906..  . 

Bradford,  G.,  Lee,  The  American,  Boston,  1912. 

Especially,    "History    of   Frederick    II    of   Prussia ;"    and    "On    Heroes." 

See  Works,  Centenary  Edition,  30  Vols.,  N.  Y.,  1890-1901.  or  any  other  good 
edition.     These  works  may  be  purchased  separately  at  very  moderate  prices. 

Mommsen,  T.,  History  of  Rome.  Trans,  by  W.  P.  Dickson,  5  Vols.,  N.  Y., 
19a3.    On  Caesar  is  Bk.  V,  Ch.  XL    On  Sulla  is  Bk.  IV,  Ch.  X. 

Goethe,  J.  W.,  The  Maxims  and  Reflections  of  Goethe.  Trans,  by  T.  B. 
Saunders,  N.  Y.,  1893. 

Foster,  John,  On  Decision  of  Character,  N.  Y.,  1875. 

Helps,  Sir  A.,  Essays  Written  in  the  Intervals  of  Business,  London,  1890. 

Von  Clausewitz,  Gen.  Karl,  On  War.  Trans,  by  Col.  J.  J.  Graham,  3  Vols., 
London,  1908. 


THE  MOST  HELPFUL  SECRETARIAL  LITERATURE.  407 

Col.  J.  B.  M.  Vache6,  Napoleon  at  Work,  N.  Y.,  1914.     ( Macmillan. ) 
By  Paul  T.  Cherington  of  Harvard  University: 

"Social  Economics." — 

R.  T.  Ely — Outlines  of  Economics. 
I.  B.  Cross — Essentials  of  Socialism. 

Business  La\A' — 

E.  AV.  HufFcut — Elements  of  Business  Law. 
J.  J.  Sullivan — American  Business  Law. 

Accounting — 

H.  R.  Hatfield — Modern  Accounting. 
W.  M.  Cole — Principles  of  Accounting. 

Commerce — 

J.  Russell  Smith — Industrial  and  Commercial  Geography. 
T.  N.  Carver — Principles  of  Rural  Economics. 
G.  H.  Powell — Cooperation  in  Agriculture. 
L.  D.  H.  Weld — Marketing  Farm  Products. 

For  special  industries  many  books  exist.  These  are  too  numerous  to  list 
here.  Any  good  book  store  can  give  suggestions.  See  also  special  lists  of 
books  on  business  subjects,  such  as  that  issued  by  A.  C.  McClurg  of  Chicago, 
and  that  bj-  The  Ronald  Press  of  New  York. 

Government — 

James  Bryce — American  Commonwealth. 

W.  B.  Munro — The  Principles  of  Municipal  Administration. 

F.  C.  Howe — The  American  City  and  Its  Problems. 
H.A.  Toulmin — ^The  City  Manager. 

Graham  R.  Taylor — Satellite  Cities. 

N.  P.  Lewis — The  Planning  of  the  Modern  City. 

City  Growth— 

R.  M.  Hurd— The  Principles  of  City  Land  Values. 

Management — 

F.  W.  Taylor — Principles  of  Scientific  Management. 
Harrington  Emerson — The  Twelve  Principles  of  Efficiency. 
The  System  Co. — Scientific  Office  Management. 
M.  T.  Copeland — Business  Statistics. 

Dealing  With  Men — 

W.  D.  Scott — Influencing  Men  in  Business. 

Hugo  Muensterberg — Psychology  and  Industrial  Efficiency. 


CHAPTER  XXII. 

College  Training  for  Chamber  of  Commerce 
Secretaries 

What  Education  Is  Doing  for  Secretarial  Efficiency 
By  PROF.  WM.  A.  SCOTT 

I  have  no  name  to  suggest  for  this  profession,  but  I  be- 
lieve it  is  in  process  of  evolution  out  of  the  existing  secretary- 
ships. The  chief  duty  and  function  of  the  members  of  this  pro- 
fession, in  my  judgment,  will  be  to  give  expert  advice  to  munici- 
palities on  all  matters  that  concern  their  economic,  social  and 
political  life,  and  to  lead  them  toward  the  goals  at  which  they 
ought  to  aim.  A  very  considerable  part  of  this  work  is  already 
being  performed  by  many,  but  I  believe  that  gradually  the 
scope  of  operations  will  be  enlarged  until  it  covers  all  the 
ground  I  have  mentioned. 

The  life  of  every  modern  municipality  presents  four  main 
aspects — its  industrial,  its  commercial,  its  political  and  its  so- 
cial aspect.  The  industrial  life  in  a  municipality  comprehends 
its  manufacturing  interests.  Every  municipality  is  bound  to 
engage  in  manufacturing  to  a  greater  or  a  less  extent,  but  the 
kind  of  manufacturing  and  the  amount  of  manufacturing  that 
ought  to  be  promoted  in  any  particular  municipality  depends 
upon  a  great  many  conditions,  some  of  which  are,  possibly, 
international,  some  national  and  others  local  in  character.  It 
is  a  matter  of  prime  importance  to  the  prosperity  of  a  city  and 
of  the  nation  to  which  it  belongs  that  it  should  develop  those 
manufacturing  industries  for  which  it  is  fitted,  and  that  if 
should  be  prevented  from  undertaking  those  for  which  it  is  not 
fitted.  Too  often  manufacturing  industries  are  solicited  by  a 
city  and  even  attracted,  without  adequate  consideration  of  the 
conditions  upon  which  their  prosperity  depends,  and  of  the 
fitness  of  the  city  to  supply  those  conditions.  Misfits  thus  occa- 
sioned are  linfortunate  from  every  standpoint  and  result  in  in- 
jury to  the  city  and  to  the  people  immediately  concerned,  be- 
cause these  misfits  have  very  often  retarded  instead  of  promoted 
the  prosperity  of  the  city. 

408 


COLLEGE  TRAINING  FOR  SECRETARIES.  409 

The  time  has  come,  in  my  judgment,  when  these  misfits  can 
be  prevented  by  expert  advice,  and  an  expert  advisor  is  needed 
to  prevent  such  misfits,  as  well  as  to  call  the  attention  of  the 
city  to  its  unused  opportunities  and  its  undeveloped  resources. 
If  these  matters  are  left  solely  to  chance  and  to  the  parties 
immediately  concerned,  these  misfits  will  continue  to  occur  and 
the  normal  development  of  the  city  will  be  retarded. 

Stimulating  Commercial  Life 

The  commercial  life  of  a  city  comprehends  the  distribution 
among  its  OAvn  citizens  of  the  goods  produced  and  manufac- 
tured within  its  borders,  for  every  city,  of  course,  must  dis- 
tribute home  products  to  home  consumers ;  the  marketing  of  its 
surplus  manufactures ;  the  distribution  among  its  own  citizens 
of  goods  produced  outside,  but  needed  for  their  consumption,  or 
as  raw  materials  for  their  manufacturers  and  the  distribution  of 
goods  between  outsiders.  Involved  in  this  w^ork  is  complicated 
transportation  and  financial  machinery,  warehouses,  stores  and 
markets. 

Several  kinds  of  expert  assistance  are  needed  for  the  proper 
functioning  of  this  department  of  city  life.  In  the  first  place, 
the  part  that  the  city  in  question  is  fitted  to  play  in  each  of 
these  lines  of  commerce  can  only  be  determined  by  a  very  care- 
ful study  of  conditions.  The  local  distribution  of  local  products 
is,  of  course,  necessary,  but  what  part  of  the  work  of  marketing, 
of  surplus  manufactures  and  of  distributing  outside  produce 
among  home  consumers,  and  w^hat  part  of  the  work  of  distribu- 
tion for  the  territory  in  which  the  city  is  located  can  economi- 
cally and  profitably  be  undertaken,  can  again  only  be  deter- 
mined by  a  careful  study  of  the  entire  distribution  problem  from 
the  standpoint  of  the  nation,  state  and  district  in  which  the 
city  is  located. 

Once  the  share  a  city  ought  to  have  in  the  w^ork  of  distribu- 
tion is  determined,  the  acquisition  of  the  necessary  capital  and 
labor  is  the  next  problem.  Sometimes  private  initiative  is  ade- 
quate for  the  solution  of  this  problem,  but  frequenth^  it  is  not. 
Many  a  city  has  failed  to  realize  its  commercial  destiny,  because 
its  advantages  were  not  revealed  on  the  capital  and  labor  mar- 
kets. Unaided  private  initiative  and  undirected  local  pride  and 
enthusiasm  often  make  grievous  mistakes  in  this  field.  The  un- 
dertaking of  commercial  enterprises  for  which  a  city  is  not  fitted 


410  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

is  bound  ultimately  to  result  in  loss  and  sometimes  in  disaster. 
Only  the  best  expert  advice  and  aid  can  avert  such  misfortunes. 

Political  and  Social  Life 

The  political  life  of  a  city  includes  all  aspects  of  its  gov- 
ernment. Every  other  department  of  its  life  is  affected  by  this 
one,  and  its  importance  is  so  well  understood  at  the  present 
time  that  no  emphasis  of  it  is  required.  Neither  is  it  necessary 
to  speak  of  the  deficiencies  of  American  cities  in  this  particular. 
The  best  expert  advice  is  certainly  needed  here,  and  it  is  here 
that  such  advice  is  least  heeded.  Times  are  rapidly  chanj^ing, 
however,  and  the  unprejudiced  public-spirited  and  well-informed 
student  has  the  confidence  of  the  public  today  to  a  greater  de- 
gree than  ever  before.  The  municipal  expert  is  destined  to  tri- 
umph in  this  field  also,  and  when  he  does  a  brighter  day  for 
our  municipalities  will  dawn. 

What  I  have  described  as  the  social  aspect  of  city  life  com- 
prehends the  fields  of  education,  religion,  art,  sanitation,  etc. 
Some  of  these  have  received  much  attention  for  a  long  time; 
others  have  been  neglected.  We  have  experts  in  each  of  them, 
but  we  lack  the  expert  who  knows  how  to  coordinate  them  with 
all  the  other  departments  of  city  life.  It  is  this  species  of  ex- 
pert that  the  new  profession  of  which  I  am  speaking  will  supply. 

I  believe  that  the  need  of  this  new  prof-ession  is  urgent,  even 
though  it  may  not  yet  be  fully  appreciated.  Competit'on  in 
many  fields  has  broken  down,  and  the  era  of  public  regulation 
of  our  industrial  and  commercial  life  has  dawned.  Under  our 
system  of  government  the  solution  of  this  problem  of  regula- 
tion is  bound  to  be  slow  and  to  be  accompanied  by  mistakes  and 
friction.  The  interests  of  our  cit'es  will  need  to  be  carefully 
guarded  thronghout  this  period,  not  in  any  selfish  spirit,  but 
in  the  spirit  of  the  broadest  patriotism  and  in  the  light  of  the 
fullest  knoAvledge  of  their  proper  places  in  the  nation's  economy. 

Further  evidence  of  the  urgency  of  this  need  may  be  found 
in  the  maladjustments  which  unregulated  competition,  unwise 
legislation  and  the  undirected  city  development  of  the  past 
have  produced.  These  maladjustments  have  made  themselves 
felt  in  the  form  of  local  industrial  depression — actual  failures 
— bad  living  conditions  and  increased  poverty.  They  ought  to 
be  removed,  but  only  a  skilled  hand  and  a  wise  head  is  com- 
petent for  this  task. 


COLLEGE  TRAINING  FOR  SECRETARIES.  411 

Breadth  of  Knowledge 

The  type  of  man  required  for  this  new  profession  is  made 
evident  by  the  functions  I  have  assigned  him.  In  the  first 
place,  he  must  have  unusual  breadth  of  sympathies  and  of 
knowledge.  The  many-sided  municipal  life  which  I  have  out- 
lined can  not  be  appreciated  by  a  narrow  man,  and  keen  ap- 
preciation of  the  importance  of  the  harmonious  development  of 
all  aspects  of  municipal  life  is  a  sine  qua  non.  A  mere  con- 
sciousness of  their  existence  will  not  suffice.  Without  thorough 
appreciation,  the  necessary  motive  power  and  interest  will  be 
lacking. 

The  necessary  appreciation  can  not  be  attained  without 
breadth  of  knowledge.  The  man  who  is  fitted  to  advise  a  mu- 
nicipality regarding  the  matters  I  have  indicated  must  have 
at  his  command  all  that  science,  art  and  experience  are  pre- 
pared to  contribute  concerning  them.  He  can  not  rely  upon 
intuition,  casual  observation,  or  even  "horse  sense,"  valuable 
as  all  these  are.  The  archstrategist,  in  other  words,  of  the 
social  life  of  the  community  is  what  we  are  looking  for. 

In  order  to  acquire  and  utilize  this  knowledge  a  man  must 
be  in  complete  command  of  his  mental  faculties,  and  must  have 
a  well  developed  imagination.  This  means  that  he  must  be 
trained.  The  faculties  of  the  mind,  as  well  as  the  muscles  of 
the  body,  must  be  developed  through  training.  One  must  learn 
to  reason,  to  concentrate,  to  form  correct  judgments,  to  do  con- 
secutive and  long  continued  mental  work  and  to  express  his 
thoughts  in  forcible  and  convincing  language.  These  powers 
are  not  born  with  us,  and  do  not,  like  Topsy,  "just  grow." 

In  addition  to  breadth  of  sympathies  and  knowledge,  the 
professional  man  I  am  describing  must  have  been  well  endowed 
by  nature,  and  must  have  developed  a  good  character.  The 
volume  of  work  he  will  have  to  do  implies  health,  physical 
strength  and  right  methods  of  living.  The  mental  equipment 
rtMjuired  can  only  be  developed  out  of  a  naturally  good  mind, 
and  the  character  demanded  implies  the  possession  of  a  strong 
personality — the  elements  of  which  must  be  a  gift  of  nature — 
good  morals,  tact  and  skill  in  handling  men. 

Kind  of  Education  Required 
If  my  analysis  of  the  duties  of  this  new  profession,  and 
of  the  qualities  which  its  members  should  possess,  is  even  ap- 


412  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

proximately  correct,  the  need  for  education  is  obvious  and  may 
be  assumed.  We,  therefore,  turn  to  the  question  of  the  kind 
of  education  that  is  required.  What  kind  of  education  will 
give  a  man,  with  a  good  physical,  mental  and  moral  equipment, 
the  breadth  of  sympathies  and  of  knowledge  and  the  general 
and  special  training  which  this  new  profession  demands?  That 
is  the  question  before  us. 

I  have  already  called  attention  to  the  fact  that  the  acquisi- 
tion of  the  special  forms  of  knowledge  required  in  this  process 
of  education  must  be  preceded  by  a  form  or  forms  of  training 
which  will  give  the  man  command  of  his  mental  faculties.  That 
fact  is  very  often  forgotten  in  the  consideration  of  this  subject 
and  the  assumption  made  that  any  man  who  wants  to  prepare 
himself  for  this  kind  of  work  should  proceed  at  once  to  the  study 
of  the  special  branches  of  knowledge  that  have  direct  application 
to  it.  Educational  experience,  however,  the  accumulation  of 
centuries,  tells  another  story.  In  the  development  of  the  rea- 
soning faculties  the  imagination,  the  powers  of  concentration 
and  of  expression,  mental  endurance  and  the  ability  to  consider 
without  bias  all  sides  of  a  question  and  all  the  facts  that  must 
enter  into  the  correct  solution  of  a  problem — some  educational 
instruments  are  not  only  better  than  others,  but  are  indis- 
pensable. The  power  accurately  and  forcibly  to  express  one's 
thoughts,  for  example,  can  not  be  acquired  without  the  study 
of  language  and  certain  forms  of  literature,  and  without  an 
enormous  amount  of  practice,  under  competent  criticism  in  the 
use  of  one's  mother  tongue.  One  must  learn  to  reason  by  rea- 
soning, and  some  subjects  of  study  are  greatly  superior  to  others 
for  this  purpose.  Mathematics,  for  example,  has  no  peer  as  an 
instrument  for  developing  the  capacity  to  draw  correct  conclu- 
sions from  premises  and  to  concentrate  the  attention.  History 
trains  and  tempers  the  judgment  and  broadens  the  sympathies. 

In  short,  the  man  who  wants  to  prepare  himself  for  this 
profession  can  not  dispense  with  the  educational  instrumentali- 
ties supplied  in  our  primary  and  secondary  schools,  and  must 
expect  to  secure  the  special  training  for  this  profession  in 
our  higher  institutions  of  learning,  especially  in  our  colleges 
and  universities.  Indeed,  experience  has  shown  that  young 
men  and  women  are  far  from  prepared  for  highly  specialized 
studies  when  they  pass  from  the  high  school  into  the  college  and 
the  university.     It  is  for  this  reason  that  most  of  the  higher 


CX>LLEGE  TRAINING  FOR  SECRETARIES.  413 

educational  institutions  of  this  country  continue  through  at 
least  the  first  two  years  of  college  the  use  of  some  of  the  educa- 
tional instrumentalities  employed  in  the  high  school. 

After  a  man  has  gained  control  of  his  mental  and  spiritual 
faculties,  what  educational  instruments  will  best  prepare  him 
for  the  peculiar  duties  of  this  most  exacting  profession? 

During  the  last  century  and  a  half,  based  upon  valuable 
materials  contributed  by  learned  men  of  the  ancient  and  medi- 
eval world,  several  bodies  of  knowledge  have  been  built  up, 
known  collectively  as  the  social  sciences.  These  are  capable  of 
supplying  the  instrumentalities  needed  for  this  purpose.  The 
most  important  of.  these  are  physical  and  economic  geography, 
political  economy,  political  science,  sociology  and  history. 

Physical  and  economic  geography  reveals  the  location  of 
those  natural  resources  w^hich  are  the  basis  of  the  world's  in- 
dustries, and  the  natural,  social  and  other  influences  which 
determine  the  location  of  the  industries  developed  from  them. 
It  supplies  a  large  part  of  the  information  needed  in  the  de- 
termination of  what  a  city  should  and  what  it  should  not  at- 
tempt to  do. 

Value  of  Political  Economy 

It  must  be  supplemented,  however,  by  political  economy, 
w^hich  reveals  w^hat  we  know  regarding  national  housekeeping 
in  all  its  phases.  It  presents  an  analysis  of  all  the  factors  of 
national  economic  life,  the  laws  in  accordance  with  which  they 
operate,  and  the  political,  social  and  other  regulations  best 
fitted  to  secure  the  maximum  of  economic  prosperity.  It  treats, 
among  many  others,  of  such  subjects  as  the  interdependence 
of  nations,  of  the  various  subdivisions  of  each  nation,  and  of 
man  upon  man;  the  principles  w^hich  determine  the  organiza- 
tion of  industrial  units  of  each  branch  of  industry  and  com- 
merce, and  finally  of  all  the  industries  of  the  w^orld,  the  laws 
of  value  and  price,  the  machinery  of  exchange  and  the  distribu- 
tion of  wealth,  the  relations  between  government  and  industry 
in  all  their  aspects,  including  public  expenditures  and  income 
and  their  effects  upon  industries  and  individuals,  public  regu- 
lation of  industry,  sanitary  measures  and  public  education, 
and  the  functions  and  relations  of  labor  and  capital.  This  body 
of  knoAvledge  throws  light  in  a  thousand  ways  upon  the  prob- 
lems that  confront  the  commercial  secretary  and  is  absolutely 
essential  to  their  correct  solution. 


414  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

Political  science  is  the  science  of  government.  It  treats 
of  the  machinery  and  functions  of  government  and  of  all  things 
which  pertain  to  the  political  life  of  a  people.  It  teaches  what 
forms  of  government  are  best  for  nations,  states,  municipalities 
and  other  political  units,  under  the  different  conditions  of  their 
existence,  and  what  political  methods  are  best  adapted  to  ac- 
complish the  purposes  of  political  life.  To  this  end  it  has  clas- 
sified and  interpreted  tlie  political  experience  of  the  race  a.nd 
indicated  its  application  to  modern  conditions. 

Sociology  a  Coordinating  Science 

Sociology  is  a  coordinating  science  and  cultivates  the  field 
left  vacant  by  the  other  social  sciences.  It  analyzes  and  de- 
scribes the  forces  which  hold  men  together  in  society,  and 
which  explain  the  innumerable  forms  of  social  organization.  In 
this  connection  it  reveals  the  nature  and  influence  of  such 
fundamental  forms  and  institutions  as  race,  sex,  religion,  mar- 
riage, divorce,  immigration,  emigration,  colonization,  govern- 
ment, etc.  It  analyzes  the  causes  of  poverty  and  crime  and 
records  the  experience  of  the  world  in  the  treatment  of  these 
and  other  social  diseases.  It  records  finally  what  science  and 
experience  has  to  teach  regarding  the  interrelations  and  in- 
teractions between  individual  characteristics  and  social  in- 
stitutions and  conditions.  It  throws  floods  of  light  upon  doz- 
ens of  problems  with  which  the  commercial  secretary  must  deal. 

History  is  a  record  of  the  doings  and  experiences  of  the 
race  and  an  interpretation  of  that  record.  No  man  can  under- 
stand present  conditions  and  problems  in  this  or  any  other  na- 
tion, in  his  own  city  or  in  any  other,  without  a  knowledge  of 
the  past  conditions  and  problems  out  of  which  they  developed. 
Our  present  life,  in  all  its  aspects,  is  a  product  of  the  past,  and 
the  present  conditions  the  future.  History  is,  therefore,  an  in- 
dispensable means  for  the  training  of  the  municipal  expert. 

One  after  another  these  developing  bodies  of  knowledge 
have  been  incorporated  as  subjects  of  study  into  the  curricula 
of  our  educational  institutions,  especially  into  those  of  our  col- 
leges and  universities.  In  a  hundred  places  in  this  country 
and  in  all  the  great  universities  of  Europe  and  most  other  parts 
of  the  world  one  will  now  find  facilities  for  their  study.  But 
until  a  comparatively  few  years  ago  little  effort  had  been  made 
to  select  from  these  great  treasure  houses  the  precise  things 


COLLEGE  TRAINING  FOR  SECRETARIES.  415 

needed  for  the  equipment  of  men  for  various  specific  tasks.  It 
was  assumed  that  each  man  would  be  able  to  make  the  selection 
for  himself,  or  to  utilize  for  his  own  life  purposes  those  parts 
of  knowledge  accumulated  during  the  process  of  his  education, 
adapted  to  this  purpose  and  to  that,  and  that  he  could  select  for 
himself,  out  of  the  abundance  at  his  disposal,  the  instrumentali- 
ties needed  for  his  proper  training. 

Attitude  of  Universities 

AVithin  recent  years,  however,  some  of  the  leading  universi- 
ties of  the  country  have  taken  a  different  view  of  the  matter, 
and  have  recognized  the  need  for  specialized  courses  of  study 
adapted  to  the  needs  not  only  of  men  planning  to  enter  the  so- 
called  learned  professions  of  law,  medicine  and  theology,  but 
also  of  engineers,  business  men  and  various  classes  of  public 
servants.  The  engineering  courses  were  the  first  to  be  devel- 
oped, and  it  was  not  until  about  1900  that  a  beginning  was 
made  in  the  development  of  courses  for  the  other  classes.  In 
this  latter  field  the  University  of  Pennsylvania,  at  Philadel- 
phia, the  University  of  California,  at  Berkeley,  and  the  Uni- 
versity of  Wisconsin,  at  Madison,  were  pioneers.  Their  ex- 
ample has  been  followed  by  Dartmouth  College,  the  Universi- 
ties of  Illinois,  Michigan,  Minnesota  and  Chicago,  Harvard 
University  and  many  other  institutions.  The  new  courses  are 
ditferently  named  in  different  institutions,  the  most  common 
appellations  being  ^'Course  in  Commerce"  and  ''Course  in  Com 
merce.  Finance  and  Accounts." 

These  courses  supply  most  of  the  instrumentalities  needed 
for  the  training  of  the  members  of  the  new  profession  to  which, 
in  the  incipient  stage^si  of  its  development,  you  gentlemen  be- 
long. They  need  only  to  be  supplemented  by  two  or  three 
other  courses,  which  I  shall  presently  attempt  to  describe.  In 
support  of  this  statement  T  Avish  briefly  to  describe  one  of  these 
courses.  For  this  purpose  I  shall  use  the  one  in  my  own  insti- 
tution, not  because  I  wish  to  claim  for  it  superiority,  but  be- 
cause I  am  most  familiar  Avith  it. 

Our  "Course  in  Commerce,"  so-called,  requires  four  years 
for  its  completion,  like  the  other  university  courses,  and  like 
them,  too,  confers  upon  its  graduates  the  degree  of  Bachelor  of 
Arts,  and  admits  the  graduates  of  high  schools  who  have  com- 
pleted the  usual  preparatory-for-college  studies. 


416  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

Incorporated  in  the  curriculum  for  the  first  two  years  are 
the  usual  non-specialized  courses,  in  continuation  of  those  pur- 
sued in  the  high  school,  designed  to  complete  that  training  in 
the  power  to  reason,  to  make  accurate  judgments,  to  express 
one's  thoughts  orally  and  on  paper,  etc.,  w^hich  I  have  already 
indicated  as  necessarily  precedent  to  the  successful  pursuit  of 
specialized  studies.  To  some  extent,  however,  these  have  been 
modified  so  as  to  yield  certain  by-products  of  a  somewhat 
special  character.  The  foreign  language  courses,  for  example, 
lay  emphasis  upon  training  to  speak  and  write  rather  than 
upon  the  acquisition  of  the  capacity  simply  to  read  literature. 
The  course  in  mathematics  includes  the  mathematics  of  invest- 
ment, life  insurance,  etc.,  and  the  course  in  English  includes 
commercial  correspondence. 

Specialized  University  Courses 

These  courses  are  accompanied  by  others  in  physical  and 
commercial  geography,  elementary  political  economy,  money 
and  banking,  transportation,  economic  history  and  accounting, 
upon  which  are  built  the  specialized  courses  of  the  last  two 
years.  These  specialized  courses  of  the  last  two  years  are  also 
accompanied  by  a  thorough  course  in  commercial  law,  and  in 
the  organization  and  management  of  business  concerns. 

The  chief  feature  of  the  w^ork  of  the  last  two  years,  how- 
ever, is  the  grouping  of  courses,  to  meet  the  special  needs  of 
the  young  men  who  come  to  us.  So  far  as  possible  we  fit  the 
case  of  each  individual,  but  our  most  completely  developed 
groups  are  arranged  for  the  training  of  accountants,  statisti- 
cians, consular  officers  and  bankers. 

At  the  earnest  solicitation  of  my  friend  and  counsellor  for 
many  years,  and  your  worthy  President,  Mr.  William  George 
Bruce,  of  Milwaukee,  in  1913  we  provisionally  arranged  a  group 
for  the  training  of  commercial  secretaries.  It  consists  of  a 
combination  of  courses  in  political  economy,  political  science, 
sociology  and  history,  and  as  soon  as  the  demand  warrants  we 
plan  to  supplement  these  with  a  course  descriptive  of  the  work, 
methods  and  problems  of  chambers  of  commerce,  and  to  ac- 
company that  with  field  work,  which  will  give  candidates  for 
secretarial  positions  some  practical  experience. 

We  have  made  a  beginning  only,  but  w^e  intend  to  develop 
this  group  with  the  same  care  and  thoroughness  we  have  de- 


THE  UNIVERSITY  AND  THE  SECRETAKY.  417 

voted  to  the  others  I  have  mentioned.  In  this  work  we  need 
and  must  have  the  assistance  of  all  secretaries.  The  informa- 
tion upon  which  these  courses  must  be  based  must  come  from 
them,  and  the  field  work  which  should  accompany  them  will  be 
impossible  without  their  cooperation. 

In  the  development  of  this  group  we  shall  keep  in  mind 
the  larger  problem  which  I  have  been  discussing.  The  develop- 
ment of  this  new  profession  should  be  hastened  as  much  as  pos- 
sible, and  we  are  ready  to  do  our  part  in  bringing  this  about. 


The  University  and  the  Secretary 

By  PROF.  EDWARD  D.  JONES 

The  principles  of  economics  are  operative  upon  various 
planes:  from  the  consideration  of  the  details  of  the  financial 
life-plan  of  an  individual,  they  ascend  to  the  policies  of  great 
nations  in  the  world  struggle  for  land  and  markets. 

1.  Private  Economics.  There  is  first  of  all  what  may  be 
called  private  economics;  a  subject  commonly  referred  to  as 
the  science  of  personal  efficiency.  Here  the  aim  is  to  instruct 
the  individual  in  the  development  and  use  of  his  personal  re- 
sources. This  subject  Benjamin  Franklin  enriched  with  many 
an  axiom,  such  as : 

"A  used  key  is  always  bright," 

"It  is  hard  for  an  empty  bag  to  stand  upright,"  and 

"Honesty  is  the  best  policy.'^ 
The  literature  of  personal  efficiency  has  been  greatly  im- 
proved in  recent  years  by  reason  of  the  more  searching  com- 
parison of  individual  records  made  possible  by  the  elaborate 
recording  systems  of  great  businesses. 

2.  Business  Administration.  The  second  plane  of  eco- 
nomic action  deals  with  the  policies  of  private  businesses.  In 
university  circles  this  subject  is  often  denominated  business 
administration.  For  the  most  part  it  has  to  do  with  the  economic 
utilization  of  material  agencies,  that  is  to  say,  with  applied 
science ;  with  the  manipulation  of  value  relations,  as  in  finan- 
cing and  accounting,  and  with  the  administration  of  human 
nature,"  as  illustrated  by  the  work  of  the  general  executive. 

3.  Local  Economics.  As  w^e  pass  forward  from  the  poli- 
cies of  small  units  to  those  of  larger  size,  it  is  obvious  that  the 

15 


418  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

next  plane  of  economic  policy  has  to  do  with  the  combination 
of  individual  businesses  to  form  efficient  villages,  cities  and 
distinctive  regions. 

4.  National  Economy.  Fourth,  we  have  national  econom- 
ics, better  known  as  political  economy,  which  deals  with  the 
great  balancing  processes  of  demand  and  supply  by  which  the 
general  levels  of  rent,  wages,  interest  and  profits  are  deter- 
mined. In  the  consideration  of  the  larger  aspects  of  a  nation's 
commerce  and  industry  such  topics  arise  as  the  tariff,  the  im- 
migration problem,  the  national  banking  system,  and  the  rela- 
tion of  public  to  private  activity. 

Undeveloped  State  of  Lrocal  Economics 

Re\dewing  these  various  strata  of  economic  activity,  one 
overlying  the  other,  we  find  that  the  branch  of  the  science  which 
is  least  developed  is  the  third  one,  or  the  study  of  the  economic 
structure  and  economic  policies  of  a  city  or  a  locality. 

When  a  young  man  starts  in  life,  there  is  an  immense 
amount  of  valuable  advice  available  to  him,  as  to  the  general 
ordering  of  his  private  finances,  and  as  to  the  personal  habits 
which  make  for  material  prosperity.  And,  if  he  combines  with 
other  men,  and  enters  a  business  concern  in  a  managerial  ca- 
pacity, where  he  will  have  to  do  with  the  formation  of  policies, 
there  is  abundance  of  knowledge  within  reach  with  reference 
to  such  matters  as  organizing  and  financing,  the  laying  out  of 
the  shops,  the  formation  of  labor  policies,  the  installing  of  ac- 
counting systems,  and  the  building  up  of  a  selling  campaign. 
But  now,  when  we  take  the  next  step  in  the  integration  of  eco- 
nomic forces  and  ask  how  that  business  concern  shall  conduct 
itself  with  other  businesses  in  the  same  locality,  so  that  the 
resources  of  the  place  shall  be  fully  used,  or  so  that  a  com- 
pletely equipped  industrial  or  commercial  center  shall  be 
brought  into  existence,  we  find  that  practice  is  halting,  and  that 
economic  science,  apart  from  a  few  pious  platitudes,  is  prac- 
tically silent. 

This  lack  of  definite  knowledge  is  the  more  surprising  when 
we  consider  that  men  have  lived  in  cities  from  the  earliest  time, 
and  that  the  derivation  of  the  word  "political,"  in  the  title 
"political  economy,"  refers  us  back  to  the  age  of  city-states. 

Men  work  individually  to  produce  w^ealth.  They  work  in 
small  groups  as  firms  and  corporations.     They  w^ork  also  in 


THE  UNIVERSITY  AND  THE  SECRETARY.  419 

national  groups  through  comprehensive  public  policies.  How 
do  they— or  how  ought  they — to  work  in  village  and  city 
groups? 

What  is  the  economic  structure  of  a  city? 

How  ought  an  economic  survey  to  be  conducted  to  deter- 
mine whether  or  not  a  city  is  serving  its  tributary  territory  sat- 
isfactorily? 

What,  for  example,  ought  a  village  of  2,500  people  to  be  as 
a  market  for  a  surrounding  agricultural  region? 

What  are  the  necessary  agencies  for  a  New  England  mill 
town,  in  order  that  such  a  place  shall  be  a  good  home  for  labor 
and  capital? 

What  special  agencies  should  a  great  metropolitan  market 
possess? 

Are  we  clear  enough  in  group  analysis  to  say  when  a  manu- 
facturing center  is  large  enough  to  have  a  local  foundry,  or  a 
mill  supply  house;  or  when  a  special  market  should  have  a 
trading  floor? 

Do  we  know  the  essential  conditions  for  success  with  public 
markets  or  public  employment  bureaus? 

I  believe  that  some  of  the  causes  of  this  remarkable  defect 
in  economic  science  are  our  over-emphasis  of  the  function  which 
individual  initiative  plays  in  business,  our  constant  talk  of  com- 
petition, and  our  defective  view  of  competition  as  a  state  of 
pure  antagonism.  These  are  all  signs  of  lack  of  faith  and  lack 
of  discipline. 

Present  Opportunity 

But  whatever  the  retarding  causes  may  have  been,  one 
thing  is  certain :  The  opportunity  is  now  at  hand  for  making  a 
beginning  in  the  systematic  development  of  local  economics. 
The  many  associations  represented  in  this  convention  indicate 
a  national  movement  in  American  business  for  individual  con- 
cerns to  work  together  for  the  local  good.  Everywhere  men 
are  exploring  the  possibilities  of  working  together  profitably 
in  larger  groups.  What  may  be  called  an  extra-competitive 
field  of  enterprise  is  being  discovered. 

In  this  work  the  universities  will  take  their  part.  The 
business  world  is  the  laboratory  of  original  experiment  in 
economic  matters.  The  universities  are  the  systematizing  and 
teaching  agencies  which  conserve  and  disseminate  the  truth 
that  has  been  discovered.    If  you,  in  your  associations,  discover 


420  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

how  the  economic  agencies  of  a  locality  can  be  made  more  effi- 
cient through  joint  action,  it  will  become  our  duty  to  teach  the 
results  to  college  men.  The  knowledge  which  commercial  as- 
sociations gain  of  local  economics  it  will  be  the  duty  of  the  uni- 
versities to  collect  and  reduce  to  systematic  statement,  so  that 
the  charm  of  the  friendly  doctrine  of  cooperation,  and  the  profit 
of  business  amity  and  local  patriotism  may  become  firmly  fixed 
in  the  minds  of  coming  generations  of  college  graduates. 

Proofs  of  Business  Solidarity 

This  experimentation  may  be  undertaken  with  confidence. 
There  is  no  doubt  but  that  the  solidarity  of  interest  which  ac- 
tually, or  potentially,  exists  between  business  interests  is  much 
greater  than  has  been  supposed  by  any  but  the  foremost  of 
our  business  leaders.  It  begins  to  look  as  if  there  were  an  op- 
portunity for  the  scientific  management  of  the  economic  in- 
terests of  a  locality,  which  promises  results  similar  to  those 
now  being  achieved  by  the  application  of  scientific  management 
to  individual  establishments.  The  indications  of  this  which 
reveal  themselves  in  the  study  of  business  administration  are 
very  strong.  Let  us  notice  some  of  these  signs  of  solidarity  of 
interest  in  business. 

The  theory  of  private  business  administration  is  being  de- 
veloped, not  as  a  series  of  complete  studies  of  individual  lines 
of  business — such  as  a  science  of  furniture  manufacture,  or  a 
science  of  machine  shop  operation — but  as  an  elaboration  of  the 
individual  phases  or  aspects  common  to  many  industries. 

Practically  every  business  has 

1 .  A  set  of  problems  concerned  with  equipment  and  physi- 
cal processes. 

2.  Each  has  a  financial  phase,  involving  the  art  of  raising 
funds  and  of  satisfying  the  demands  of  different  classes  of 
creditors. 

3.  Every  business  has  an  accounting  problem,  which  has 
to  do  with  the  organization  of  a  system  of  records  to  truly  report 
income  and  expense,  assets  and  liabilities. 

4.  So  also  every  business  has  an  administrative  aspect, 
concerned  mth  the  choice  of  persons,  the  delegation  of  author- 
ity, and  the  creation  of  a  sufficient  incentive  for  every  man. 

5.  Likewise,  every  business  has  a  distributive  or  marketing 
problem. 


THE  UNIVERSITY  AND  THE  SECRETARY.  421 

The  study  of  these  various  aspects  of  business  reveals  the 
fact  tiiat  progress  in  any  one  of  them  is  not  so  much  made  by 
an  individual  establishment  distancing  all  rivals  and  moving 
forward  alone,  nor  even  by  a  branch  of  trade  growing  in  per- 
fection far  beyond  all  others,  but  rather  by  a  lively  process  of 
intercliange  of  ideas  between  establishments  in  the  same  line 
and  in  ditferent  lines,  so  that  all  move  forward  together.  In 
short,  there  is  in  practical  busmess  a  cross-fertilization  of  ideas 
and  an  interchange  of  equipment  exactly  like  that  in  scientific 
research. 

Let  us  consider  a  few  illustrations  of  this  law  of  progress. 

The  Equipment  Phase 

Take,  first,  the  equipment  problem.  In  factory  construc- 
tion the  principles  of  slow-burning  or  standard  mill  construc- 
tion were  worked  out  by  the  compilation  of  New  England  mill 
experience  by  factory  mutual  insurance  companies.  These 
simple  but  extremely  valuable  principles  are  now  available  for 
all  builders. 

The  Corliss  cut-off  on  the  steam  engine  was  originally  de- 
signed to  make  the  impulse  of  the  engine  sufficiently  even  for 
spinning  delicate  threads  of  yarn,  but  the  improvement  served 
to  perfect  the  engine  for  a  thousand  uses. 

The  system  of  interchangeable  parts,  so  essential  in  all 
industries  making  or  using  mechanism  is,  as  it  stands  today, 
the  work  of  half  a  dozen  lines  of  industry.  The  first  steps 
were  taken  in  the  manufacture  of  muskets  for  the  United  States 
Government.  The  further  development,  involving  the  evolu- 
tion of  machine  tools,  the  attainment  of  greater  accuracy  in 
the  dimensions  of  parts,  and  the  devising  of  a  system  of  stock 
parts  to  permit  repair  by  replacement,  we  owe,  in  historical 
order,  to  the  sewing  machine  manufacturers,  the  makers  of 
agricultural  implements,  the  bicycle  trade,  and  the  automobile 
industry.  Everything  with  reference  to  physical  equipment  in 
industry  shows  the  carrying  of  ideas  back  and  forth,  and  the 
reaction  of  one  industry  upon  another. 

The  Accounting  Phase 

Another  illustration  of  the  necessity  of  diverse  businesses 
keeping  in  touch  is  provided  by  the  theory  of  cost  accounts. 
Businesses  of  uniform  character,  such  as  spinning  and  weav- 


422  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

ing,  where  all  items  of  outlay  tend  to  rise  and  fall  together, 
elaborated  first  the  percentage  methods  of  distributing  expense. 
The  skilled-labor  industries  supplied  us  with  the  man-hour 
system.  The  modern  machine  shop  has  perfected  the  machine- 
hour  plan,  and  is  exijerimenting  with  the  idea  of  charging  by 
production  centers.  The  modern  cost  accountant  thus  has 
available  a  variety  of  expedients,  and  in  a  complex  industry 
can  select  and  proportion  his  elements,  creating  a  system  spe- 
cially adapted  for  the  necessities  of  the  individual  case. 

As  the  evolution  has  been  in  the  past,  so  contemporary 
progress  is  undoubtedly  being  achieved.  One  of  the  most  in- 
telligent ways  of  training  efficient  cost  accountants  is  to  bring 
the  men  of  various  lines  of  industry  together,  so  that  they  may 
throw  light  upon  discussions  from  many  different  points  of 
view.  This  plan  is  being  followed  in  Detroit  under  the  auspices 
of  the  Board  of  Commerce. 

The  Administrative  Phase 

The  next  aspect  of  business  enumerated  in  our  list  is  the 
administrative.  Administration  is  such  a  great  subject,  and 
so  replete  with  illustrations  of  the  interchange  of  helpful  in- 
fluences between  different  businesses,  that  we  must  let  it  pass, 
contenting  ourselves  with  one  example. 

The  subject  of  welfare  work  is  under  lively  debate.  Sup- 
pose an  establishment  proposes  to  open  an  employees'  dining 
room  for  the  midday  lunch.  If  the  management  looks  about, 
what  does  it  find — a  state  of  apparent  contradiction.  One  es- 
tablishment has  tried  a  dining  room,  and  pronounces  it  the 
greatest  success  of  any  of  its  efforts  to  ameliorate  the  condition 
of  employees.  Another  establishment  has  failed  with  similar 
plans ;  and  it  may  not  be  evident  that  the  reason  was  unfriend- 
ly feeling,  or  a  rapidly  changing  force,  or  village  conditions,  or 
poor  cooking.  One  plant  arranges  for  a  dinner  at  a  cost  of 
fifteen  cents  and  succeeds,  the  force  being  highly  paid  mechan- 
ics manufacturing  an  expensive  automobile.  Another  plant 
fails  with  meals  at  ten  to  twelve  cents,  because  its  men  are  for- 
eigners on  low  pay.  These  men  really  needed  simply  a  place 
to  keep  food  cold  or  hot,  and  a  cup  of  coffee  or  a  bowl  of  soup 
to  supplement  the  solid  food  of  the  lunch  pail.  One  establish- 
ment succeeds  with  flowers  and  linen,  while  another  drives  its 
patrons  away  by  the  same  means.  " 


THE  UNIVERSITY  AND  THE  SECRETARY.  423 

In  the  study  of  any  ^ven  line  of  welfare  work  it  is  neces- 
sary to  compile  the  history  of  many  cases  before  the  practical 
limits  of  various  plans  become  definite;  and  before  the  law  of 
variation  of  policy  in  response  to  conditions  is  manifest.  But 
individual  businesses  have  not  the  time  to  conduct  thorough- 
going studies  of  every  administrative  policy  they  employ.  There 
is  an  immense  amount  of  money  annually  wasted  in  welfare 
work  because  the  policy  is  followed,  of  doing  a  thino^  for  the 
reason  that  it  has  succeeded  with  some  other  firm.  This  han- 
dling of  policies  is  as  crude  as  Avould  be  the  handling  of  equip- 
ment if  an  engineer  installed  a  given  arrangement  of  shafting 
and  belting  in  a  waterworks  station  because  it  had  succeeded 
in  a  spinning  mill.  What  is  more  reasonable  than  that  commer- 
cial associations  should  become  clearing-houses  of  needed  in- 
formation, supplying  data  as  to  the  conditions  essential  to  suc- 
cess in  each  type  of  Avelfare  work,  or  as  to  plans  for  regulari- 
zing employment,  or  as  to  the  new  methods  of  paying  wages. 

The  Marketing  Phase 

We  noted  that  every  business  has  a  marketing  or  distribu- 
tive phase.    How  is  a  good  buying  and  selling  center  created? 

(a)  Merchandising  involves  the  measurement  of  quantity, 
requiring  a  system  of  weights  and  measures,  and  trade  customs 
concerning  permissible  variations. 

(b)  It  involves  measuring  the  quality  of  goods,  requiring 
a  system  of  grades,  and  means  of  certifying  grades,  and  grading 
experts,  and  even  conditioning  laboratories.  Think  of  the  labor 
of  the  Board  of  Health  of  Westfield,  Mass.,  to  establish  but  one 
point  in  the  quality  scale,  namely,  the  point  which  separates 
pure  food  from  impure  food. 

(c)  There  is  needed  the  means  of  holding  merchandise,  a 
matter  Avhich  involves  a  warehouse  industry,  and  practical  laws 
relative  to  bailments. 

(d)  It  requires,  also,  adequate  assortment,  or  a  variet}^  of 
merchandise  matching  the  variety  of  want.  In  so  far  as  the 
out-of-town  buyer  is  concerned,  this  does  not  mean  the  assort- 
ment of  any  one  concern  so  much  as  it  does  the  assortment  of 
the  market  as  a  whole.  But  if  no  one  is  responsible  for  the 
market  as  a  whole,  who  is  to  know  how  many  buyers  from  the 
naturally  tributary  territory  go  elsewhere? 

It  is  said  that,  some  years  ago,  Marshall  Field  discovered 


424  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

that  certain  important  western  buyers  were  going  east  past 
Chicago,  to  buy  such  things  as  hotel  furnishings  and  the  gen- 
eral merchandise  used  by  railroads.  The  cause  was  found  to 
be  that  these  buyers  had  to  go  east  for  rails  and  structural  steel, 
and  so  took  their  other  orders  along.  The  remedy  applied  was 
the  promotion  by  Mr.  Field  of  steel  works  in  the  vicinity  of 
Chicago.  This  is  a  case  where  a  great  captain  of  industry  made 
himself  the  correlating  agency. 

(e)  Next  to  an  adequate  assortment  we  may  mention  fair 
prices  as  a  necessity  for  successful  merchandising.  The  formula 
for  fair  prices  (in  so  far  at  least  as  general  market  policy  is 
concerned)  is  to  bring  to  bear  on  each  transaction  all  possible 
elements  of  supply  and  demand.  This  means  bringing  the  past 
and  future  to  bear  upon  the  present,  by  means  of  adequate 
warehousing  and  cold  storage  facilities.  It  means  bringing 
the  state  of  the  market  for  one  commodity  to  bear  upon  that  for 
another  article  (when  one  is  the  derivative  of  the  other), 
through  the  presence  of  converting  interests.  It  involves  bring- 
ing the  price  of  money  to  bear  upon  the  price  of  goods,  by  mak- 
ing such  arrangements  that  goods  become  a  safe  collateral  for 
loans.  It  involves,  also,  bringing  to  bear  upon  the  prices  of  any 
given  market  the  prices  of  other  places,  through  the  active  ex- 
change of  quotations.  All  this  means  a  commercial  interlock- 
ing process  which  can  only  be  made  to  approach  perfection  by 
definite  planning. 

(f )  Besides  fair  prices,  a  market  requires  means  of  sus- 
pending payment,  so  that  goods  may  freely  pass  from  the  hands 
of  those  who  have  more  merchandise  than  opportunity  into  the 
hands  of  those  who  have  more  opportunity  than  property.  This 
calls  for  a  credit  system,  safeguarded  by  adequate  reports,  by 
the  ready  application  of  mercantile  skill  in  handling  bankrupt 
stocks  through  the  work  of  a  credit  adjustment  bureau,  and  by 
the  systematic  prosecution  of  fraudulent  debtors. 

(g)  Again,  a  market  requires  local  trucking.  This  is 
probably  one  of  the  most  wasteful  forms  of  American  industry. 
Until  the  coming  of  the  motor  truck,  this  work  was  abandoned 
to  the  easy-going  methods  of  the  jovial  Irishman.  It  yet  suffers 
scandalously  from  duplication  of  plant,  from  amateur  experi- 
mentation in  pavement  construction,  and  from  congestion  in 
alleys  and  at  bridges  and  terminals  as  a  result  of  defects  in 
city  planning.     The  Chicago  Municipal  Markets  Commission 


THE  UNIVERSITY  AND  THE  SECRETARY.  425 

has  estimated  that  "the  average  wagon  or  truck  spends  about 
one-third  of  its  time  actively  hauling  commodities  on  the  street 
and  two-thirds  of  its  time  in  waiting,  loading,  unloading,  and 
in  delays  to  traffic." 

(h)  There  is  required  also  long-distance  transportation. 
Happily  we  can  say  that  Federal  laws  have  partly,  at  least  term- 
inated the  scramble  of  individual  shippers  after  railroad  favors, 
and  have  made  possible  the  system  of  having  traffic  depart- 
ments under  the  control  of  commerce  associations,  and  working 
in  the  interest  of  all  the  shippers  of  the  locality. 

(i)  Finalh^,  a  market  needs  various  incidental  equip- 
ments to  make  the  trading  process  easy  and  agi^eeable.  How 
grateful  a  relief  is  a  hotel  modeled  after  a  refined  home  rather 
than  after  a  flamboyant  lobster  palace.  And  perhaps  the  amuse- 
ment industries  will  leave  a  more  attractive  memory  if  they  are 
^  little  above  the  so-called  tired-business-man  standard. 

Intelligent  Joint  Effort 

It  is  evident  from  this  that  a  market  of  fair  size  is  about 
the  most  complex  thing,  and  about  the  most  social  thing,  the 
mind  of  man  has  devised.  A  good  market — good  for  its  size — 
is  rare.  Most  markets  fall  ridiculously  short  of  their  possible 
efficiency.  In  his  wonderful  book  "The  Harbor,''  Mr.  Ernest 
Poole  describes  America's  greatest  port.  He  speaks  of  the 
tangled  railroads  pouring  in  their  traffic,  of  boxes  and  bales 
shifted  hither  and  thither  in  a  perfect  fever  of  confusion  and 
delay,  and  of  long  lines  of  trucks  and  wagons  waiting  hours 
for  a  chance  to  get  into  the  docksheds.  The  whole  waterfront 
has  developed  pell  mell,  each  railroad  and  each  ship  line  grab- 
bing sites  for  its  otnti  use,  until  the  port,  like  a  mighty  patient, 
is  strangled  and,  with  swollen  veins  and  arteries,  labors  to 
breathe.  And  then  he  says,  "To  see  any  harbor  or  city  or  state 
as  a  whole  is  what  most  Americans  cannot  do.  And  it's  what 
they've  got  to  learn  to  do." 

A  good  market  does  not  happen.  It  does  not  emerge 
Phoenix-like  from  the  fires  of  competitive  hatred;  nor  blossom 
from  the  narrow  stem  of  policy  known  as  every-man-minding- 
his-own-business.  It  is  the  result  of  intelligent,  persevering, 
joint  effort.  We  may  profitably  borrow  suggestions  from 
countries  which  have  had  a  longer  experience  with  the  modern 
city  than  we  have  had.     Study  the  equipment  of  Manchester 


42G  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

by  whicli  it  holds  its  place  as  the  queen  of  the  cotton  trade. 
With  its  accurate  grading,  its  easy  financing,  and  its  innumer- 
able dealers  and  factors,  including  equipment  houses,  consign- 
ers, insurers,  forwarders,  packers,  and  translators,  all  bound 
together  through  the  Royal  Exchange,  it  possesses  a  perfection 
which  is  the  result  of  what,  I  suppose,  narrow-minded  persons 
would  call  "self-sacrificing"  effort.  But  it  serves  the  world, 
and  enriches  an  important  section  of  a  great  nation.  Study 
also,  the  German  cities  as  models  of  cleanness  and  beaut^^  and 
easy  growth  and  economy  of  effort. 

Conclusion 

A  word  in  conclusion.  .  As  business  agencies  multiply,  and 
the  structure  of  business  becomes  more  refined,  it  is  increasing- 
ly true  in  industry  that  "No  man  liveth  to  himself,  and  no  man 
dieth  to  himself." 

The  doctrine  of  efficiency  began  in  America  as  an  indi- 
vidual philosophy  —  a  Benjamin  Franklin  proverb  —  and  we 
learned  it  so  well  that  the  word  "Yankee"  became  synonymous 
with  shrewdness.  But  the  age  of  corporations  has  taught 
American  business  men  to  work  with  confidence  in  groups.  In- 
dividual initiative  has  broadened  into  firm  initiative.  And 
this  second  lesson,  likewise,  we  have  learned,  until  it  can  be 
said  that  no  policies  are  more  romantic  in  their  daring  than 
those  of  American  firms.  And  now  that  this  achievement  is 
familiar,  we  are  taking  the  next  step,  and  are  learning  to  work 
together  in  still  larger  groups — in  units  of  villages  and  cities. 
I  have  faith  that  we  shall  learn  to  do  this  also,  and  shall  ulti- 
mately so  excel  in  it  that  our  cities,  when  considered  as  evi- 
dences of  comprehensive  intelligence,  shall  no  longer  be  our 
disgrace. 

As  we  exterminate  another  legion  of  enemies  to  our  wel- 
fare— suspicion,  and  inadequate  information,  and  ill-coordi- 
nated effort,  and  useless  duplication — an  increase  of  prosperity 
will  be  certain.  But,  aside  from  tangible  measures  of  welfare, 
there  is  another  great  advantage  coming.  Men  are  enjoying 
business  more  because  business  is  revealing  a  nobler  aspect. 
They  are  finding  out  what  decent  fellows  their  competitors  are, 
and  how  many  fine  things  they  dare  combine  to  do  with  their 
competitors. 


Conscious  Training  for  Chamber  of  Commerce 

Secretaries 

By  PAUL  T.  CHERINGTON 

In  going  over  the  gTOund  there  were  two  questions  for 
which  I  sought  answer  at  the  very  outset  before  attacking  the 
problem  of  the  form  which  the  course  was  to  take.  In  the  first 
place,  what  is  required  of  the  modern  secretary?  In  the  sec- 
ond place,  what  provisions  are  now  in  existence  for  equipping 
a  man  with  those  requirements? 

Very  early  in  my  attempt  to  codify  the  requirements  of  a 
secretary,  I  found  there  was  one  group  in  which  we  could  not 
expect  to  give  much  direct  help.  This  is  perhaps  the  most  im- 
portant group  of  secretarial  requirements,  the  personal  fea- 
tures. That  indefinite,  intangible,  but  exceedingly  important 
thing  known  as  tact,  is  a  thing  absolutel}^  beyond  acquirement 
by  a  course  of  training.  Certain  methods  may  be  w^orked  out 
by  w^hich  a  man  can  gradually  acquire  the  appearance  of  tact, 
and  can  avoid  certain  of  the  worst  blunders  of  tactlessness, 
but  tact,  we  recognized  at  the  very  beginning,  was  one  of  the 
things  which  lay  beyond  our  province.  Skill  with  men  is 
another  thing  closely  allied  to  it,  partly  a  matter  of  practice, 
but  mainly  a  matter  of  temperament.  Ability  in  mastering 
routine  is  another  thing.  I  simply  mention  these  two  or  three 
to  let  you  know  that  we  have  not  overlooked  these  immensely 
vital  parts  of  a  secretary's  equipment,  but  that  w^e  have  not  yet 
seen  any  way  by  w^hich  we  can  do  more  than  help  a  man  if  he 
is  willing  and  able  to  help  himself. 

But  there  is  a  second  group  of  secretarial  requirements  for 
which  it  seemed  to  us  we  might  be  able  to  supply  real  training. 
All  of  these  relate  to  a  knowledge  of  and  familiarity  with,  ex- 
isting facts,  and  the  development  of  habits  of  thought  and 
habits  of  w^ork.  These  we  believe  Ave  can  go  a  long  way  tow^ards 
supplying,  and  w^e  believe  also  that  they  can  be  supplied  more 
easily,  more  successfully^  in  a  conscious  training  at  high  pres- 
sure, taken  b}'  a  man  who  devotes  his  w^hole  time  to  that  train 
ing,  than  they  can  be  by  a  man  doing  it  incidentally  to  make  a 

Note :  It  should  be  explained  that  Prof.  Cherington  speaks  here  from  tht- 
standpoint  of  an  instructor.  He  has  for  some  years  concerned  himself  ui 
Harvard  University  with  the  training  of  young  men  for  the  secretarial  fieli 

427 


428  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

living  and  without  the  pressure  of  direction  and  suggestion 
upon  the  part  of  those  who  are  conducting  the  work. 

Secretarial  Training 

Our  problem,  then,  was  not  that  of  turning  out  a  com- 
pleted secretary,  because  we  recognized  at  the  start  that  there 
Avere  certain  things  we  could  not  do  for  a  secretary,  but  our 
problem  resolved  itself  early  into  seeing  what  we  could  do  and 
then  devise,  if  possible,  a  method  for  doing  these  possible 
things  which  would  be  better  than  any  existing  method  for  p^'o- 
viding  this  training. 

To  the  existing  methods  for  secretarial  training,  we  also 
gave  attention.  Unconscious  training,  none  of  us  need  be  told, 
has  developed  some  men  who  are  better  than  the  man  we  can 
count  on  producing  by  a  system  of  conscious  training.  The 
test,  however,  will  come  in  the  measuring  of  our  average  pro- 
duct against  the  average  run  of  men  who  are  untrained  or  who 
have  been  unconsciously  trained  for  the  work.  The  newspa- 
pers, of  course,  have  supplied  most  of  the  present  secretaries 
or  at  least  they  have  supplied  more  than  any  other  one  single 
source,  and  there  is  no  more  valuable  training  in  the  world  for 
almost  anything  than  is  newspaper  work.  I  have  a  stock  bit  of 
advice  which  I  give  young  men  who  come  to  me,  asking  me 
about  going  into  newspaper  work,  I  say:  ^'By  all  means  go. 
The  only  warning  I  would  give  you  is  do  not  stay  in  it  too 
long." 

The  chief  fault  with  newspaper  training  is  that  it  tendg  to 
make  a  man  scrappy  in  his  methods  of  thought  and  work.  Any 
man  who  is  doing  ten  jobs  a  day  gets  in  the  habit  of  doing  ten 
jobs  at  once  and  doing  them  at  the  rate  of  ten  jobs  a  day,  and 
then  when  he  must  make  a  long  flight  he  flutters. 

Business  experience  is  another  good  training  for  secretarial 
work.  Some  of  the  best  secretaries  in  the  profession  have  come 
up  through  business  training,  but  the  diversity  of  the  require- 
ments for  a  secretary,  make  training  in  one  line  of  business  a 
little  bit  hazardous.  It  is  apt  to  make  a  man  narrow  and  to 
make  him  lean  a  little  bit  toward  his  own  line  of  business. 
TSTiile,  if  he  can  get  some  kind  of  training  which  takes  the  place 
of  ten  or  twenty  years,  each  spent  in  many  kinds  of  business 
and  will  give  him  an  idea  as  to  how  the  whole  ground  lies,  it 


CONSCIOUS  TRAINING  FOR  SP^CRETARIES.  429 

has  some  advantages  over  traiuing  in  one  special  business,  great 
as  are  the  advantages  of  that  kind  of  training  itself. 

The  Basis  for  Development 

The  professions  have  supplied  some  very  able  men. 
Thought  habits,  cultivated  by  a  lawyer,  thought  habits  and 
work  habits  developed  in  other  lines  of  professional  training 
have  done  the  work  well  in  many  cases.  But  the  point  is  that 
what  we  have  tried  to  do  is  to  find  some  wav  of  conscious  train- 
ing  which  will  take  the  place  of  unconscious  training  and  start 
a  man  in  this  new  profession  at  a  point  where  he  m^y  not  only 
develop  farther  than  the  man  who  starts  in  not  having  his 
bearings,  but  also  may  move  more  steadily  in  the  right  direc- 
tion. In  other  words,  it  is  not  a  question  of  our  two  years 
versus  two  years  anywhere  else.  What  we  want  to  do  is  turn 
out  a  man  with  two  years  of  training  who  can  go  into  a  secre- 
tary's office  as  an  undei^study  and  after  five  years  of  real  prac- 
tice added  to  his  two  years  of  training,  be  a  bigger,  a  broader 
and  a  better  man  than  if  he  had  spent  all  seven. years  as  under- 
secretary. That  is  what  we  are  driving  at.  We  do  not  want 
to  turn  out  a  man  who  thinks  he  knows  the  secretarial  business 
after  two  years  of  listening  to  other  people,  or  after  experi- 
menting in  one  or  two  lines  of  secretarial  work,  but  a  man  who, 
as  the  result  of  men,  with  experience  in  the  actual  trying  of 
his  wings  in  short  flight^s,  can  see  what  the  secretarial  profes- 
sion is.  And  having  seen,  we  w^ant  him  to  be  willing  to  invest 
the  hard  work  and  the  long  hours,  and  all  of  the  other  big  in- 
vestments that  must  be  made  by  a  recruit,  whether  he  be  trained 
or  untrained,  to  make  himself  a  fit  member  of  this  profession. 
The  man  we  are  looking  at  is  not  the  man  as  w^e  turn  him  out. 
What  we  want  to  know  is  how  the  man  who  started  some  kind 
of  unconscious  training  two  years  ago  and  today  goes  into  a 
minor  position  in  the  secretarial  field,  can  after  five  years  more, 
be  compared  Avith  the  man  whom  we  have  had  for  two  years 
and  who  has  then  had  five  years  of  the  same  kind  of  secretarial 
work.  Two  years  of  unconscious  training  plus  five  years  of 
secretarial  work  versus  two  years  of  conscious  training  plus 
five  years  of  secretarial  work,  that  is  the  measure  by  which 
we  shall  judge  our  success  or  failure. 

The  things  we  hope  to  develop  are  thought  habits,  w^ork 
habits,  and  breadth  of  view.     We  want  our  men,  above  every- 


430  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

thing  else,  to  have  an  appreciation  of  the  responsibility  and 
the  bigness  of  the  job.  We  want  them  to  see  the  nnlimited  pos- 
sibilities open  to  the  organization  which  they  serve  and  open 
to  them  as  servants  of  those  organizations  and  the  interests 
which  they  represent. 


Secretarial  Efficiency  and  the  College — From  the 
Standpoint  of  the  College 

By  PROF.  ALFRED  L.  SMITH 

The  influence  of  the  college  in  increasing  efficiency  in  the 
secretarial  profession  depends  solely  upon  the  efficiency  of  the 
instruction  given  in  the  college.  In  education  for  this  par- 
ticular profession,  as  in  education  for  any  other,  efficiency  of 
instruction  depends  in  turn  upon  the  successful  solution  of 
four  problems,  namely,  (1)  The  problem  of  obtaining  the  cor- 
rect human  material;  (2)  The  problem  of  determining,  gather- 
ing, and  arranging  the  necessary  and  the  best  subject  matter; 

(3)  The  problem  of  developing  and  using  the  methods  of  in- 
struction best  adapted  to  the  needs  of  this  field  of  education; 

(4)  The  problem  of  so  placing  graduates  that  their  collegiate 
training  may  be  used  to  the  maximum  benefit  of  themselves  and 
their  employers,  and  their  contact  with  practical  organization 
work  be  such  as  to  round  out  their  theoretical  training  most 
efficiently.-  These  problems  are  not  stated  in  the  order  of  their 
importance;  it  would  be  difficult  to  determine  that.  I  believe, 
however,  that  in  developing  this  type  of  education  in  any  col- 
lege these  problems  will  arise  in  this  order,  as  they  have  at 
the  Tuck  School.  The  problems  of  human  material  and  instruc- 
tion methods  are  largely  educational,  and  I  believe  must  be 
solved  in  great  part  by  the  college  itself.  In  the  successful 
solution  of  the  problems  of  subject  matter,  and  placing  men,  I 
believe  the  college  needs,  and  should,  therefore,  welcome,  the 
closest  cooperation  and  the  best  advice  of  men  actively  engaged 
in  the  profession. 

To  be  brief,  among  the  fundamental  business  courses  which 
every  student  should  take,  and  a  knowledge  of  which  perhaps 
the  commercial  executive  will  use  most  frequently,  either  know- 
ingly or  unconsciously,  are  those  we  call  distributive  organi- 
zation and  management,  comprising  a  study  of  the  organization 


SECRETARIAL  EFFICIENCY  AND  THE  COLLEGE.  431 

and  problems — especially  of  advertising  and  selling — of  mar- 
keting agencies,  such  as  retailers,  jobbers,  wholesalers,  brokers, 
commission  merchants,  cooperative  associations,  and  mail  order 
houses;  factory  organization  and  management;  financial  or- 
ganization and  management;  accounting;  transportation  meth- 
ods and  problems;  and  statistics.  One  important  result  of  a 
knowledge  of  such  courses  is  the  ability  which  it  gives  a  com- 
mercial executive  to  grasp  immediately,  and  discuss  intelli- 
gently with  business  men  their  particular  problems.  The  ap- 
plication of  these  courses,  however,  is  often  more  direct. 

Rudiments  of  Retail  Trade 

An  elementary  knowledge  of  merchandising  principles,  as 
you  all  know  from  experience,  is  essential  to  successful  work 
with  mercantile  committees  or  associations.  The  secretary, 
to  be  a  valuable  aid,  must  know  the  rudiments  of  retail  trade 
strateg;^^;  to  be  a  leader  he  must  be  thoroughly  informed  of 
the  problems  of  the  various  mercantile  businesses.  In  the  man- 
agement of  cooperative  merchants'  weeks,  and  advertising  and 
selling  campaigns,  the  secretary's  knowledge  of  advertising 
principles  and  methods  may  mean  the  difference  between  suc- 
cess and  failure.  I  believe  that  in  most  communities  the  most 
foolish  thing  that  can  be  done  to  fight  mail  order  houses  i^  to 
advertise  them  by  beseeching  people  to  trade  at  home,  when  at 
the  same  time  the  merchants  refrain  from  using  the  most  pow- 
erful weapons  that  they  possess,  namely :  Excellent  store  serv- 
ice, decreased  selling  cost«,  attractive  window  displays,  pleas- 
ing advertisements,  and  a  sound  strategy  regarding  the  conduct 
of  sales.  If  a  commercial  organization  is  to  aid  its  members 
in  fighting  mail  order  houses  in  the  manner  I  think  most  effi- 
cient, the  secretary  must  thoroughly  understand  merchandising 
principles  and  methods. 

On  the  general  college  training  plus  familiarity  with  busi- 
ness fundamentals  should  be  superimposed  a  special  course 
on  commercial  executive  work.  The  problem  here  is  to  give  a 
course  neither  too  theoretical  to  furnish  the  student  a  working 
knowledge,  nor  too  detailed  and  technical  to  provide  the  stu- 
dent with  that  broad  and  keen  insight  into  the  proper  relation 
of  the  organization  and  its  activities  to  the  business  world  and 
the  real  reasons  for  its  existence.  The  danger  is  from  the  lat- 
ter rather  than  from  the  former.    My  opinion  is  that  the  func- 


432  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

tion  of  the  specialized  course  goes  no  farther  than  to  give  the 
student  a  complete  and  clear  idea  of  the  true  functions  of  a 
commercial  organization,  a  knowledge  of  the  common  types  of 
organization,  and  the  reasons  for  and  relations  of  committees, 
bureaus,  and  sub-ordinate  associations,  a  familiarity  with  ordi- 
nary activities,  and  some  detailed  knowledge  of  a  certain  few 
activities  which  are  rather  technical,  or  which  have  now  been 
so  standardized  as  to  warrant  consideration.  It  is  very  easy 
to  introduce  much  superfluous  matter  while  straining  to  in- 
clude actual  methods  employed  in  conducting  a  wide  range  of 
activities,  or  even  a  few  which  may  for  some  reason  appeal 
either  to  the  instructor  or  to  the  students. 

A  Course  of  Study 
The  following  is  an  outline  of  a  Tuck  School  course  as  pre- 
sented last  year : 

Part  I — Organization  and  Functions 
1.    History  and  development;  2.  Functions;  3.  Prominent 
activities ;  4.  Type  of  organization. 

More  emphasis  is  placed  on  this  part  of  the  course  than 
on  the  others  because  it  is  of  the  most  vital  importance  that  the 
novice  know  the  true  functions  of  a  commercial  organization, 
and  realize  ^'that  teaching  the  community  to  think,"  as  one  of 
my  friends,  Lucius  E.  Wilson,  says,  is  one  of  the  big  jobs  of  the 
commercial  organization,  and  that  important  as  is  business 
development  of  a  community,  it  is  necessarily  subordinated  to 
the  broader  community  development.  Without  such  a  rock  to 
f^tand  on,  a  young  secretary  is  in  great  danger  of  being  swept 
away  by  the  waves  of  selfish  desires,  unjust  criticisms,  unwise 
projects,  and  utter  misunderstanding  of  the  true  functions  of 
a  commercial  organization.  It  is  said  "familiarity  breeds  con- 
tempt,'' but  it  is  just  as  true  that  familiarity  breeds  a  feeling 
of  security  and  ability  to  work  efficiently,  and  for  this  reason 
a  young  secretary  should  be  thoroughly  familiar  with  the  func- 
tions, popular  activities,  dangers  and  successes  of  commercial 
organizations. 

Part  II — Perpetuation  of  the  Organization 
1.    Membership  work :    a.  Recruiting  membership ;  b.  Keep- 
ing up  membership  interest;  c.  Membership  meetings; 


SECRETARIAL  EFFICIENCY  AND  THE  COLLEGE.  433 

2.  Committee  work :  a.  Selection  of  committee  members ; 
b.  Preparation  of  program ;  c.  Committee  investigation  and  re- 
search; d.  Conduct  of  committee  meetings;  e.  Committee  re- 
ports ; 

3.  Financing  activities ; 

4.  Publicity:  a.  Organization  publications;  b.  Member- 
ship letters;  c.  Use  of  local  press; 

5.  Miscellaneous  publicity. 

In  this  section  of  the  course  is  given  what  I  consider  the 
four  vital  phases  of  commercial  organization  w^ork.  Powerful 
forces  continually  operate  to  render  a  commercial  organization 
inactive,  yet  it  is  in  its  constant  activity  and  ever  present  po- 
tential support  in  case  of  sudden  civic  or  commercial  need  that 
the  commercial  organization  renders  its  greatest  single  service 
to  a  community. 

,  The  final  section  of  the  course  concerns  itself  with  more 
or  less  detailed  discussion  of  the  more  important  lines  of  com- 
mercial organization  work,  or  those  which  seem  to  have  been 
more  nearly  standardized. 

Part  III — Activities  and  Methods 

1.  Industrial  development:  a.  Aid  of  established  local 
industries;  b.  Attraction  of  new  industries;  c.  The  industrial 
survey;  d.  Locating  prospects;  e.  Methods  of  financing  new  in- 
dustries. 

2.  Retail  trade  development:  a.  Credit  reporting  and 
collecting  systems ;  b.  Cooperative  advertising  methods ;  c.  Con- 
duct of  merchants'  weeks,  trade  carnivals,  expositions,  etc. ; 
d.  Improvement  of  merchandising  methods  and  protection 
against  fraudulent  practices ;  e.  Attraction  of  conventions. 

3.  Development  of  transportation  facilities:  a.  Discus- 
sion and  study  of  the  organization,  financing  and  activities  of 
the  traffic  bureau. 

4.  Development  of  the  surrounding  region :  a.  The  county 
farm  bureau,  agricultural  association  and  county  improvement 
league;  b.  Promotion  of  interest  between  farmers  and  the  city. 

5.  Promotion  of  civic  activities:  a.  City  planning  and 
beautification ;  b.  Cooperation  with  municipal  officials;  c.  Pro- 
motion of  miscellaneous  civic  activities,  as  clean-up  weeks,  edu- 
cational surveys,  etc. 

The  problem  of  teaching  the  best  instruction  methods  is 


434  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

essentially  a  problem  of  the  school.  The  course  naturally  lends 
itself  to  the  system  of  lectures,  assignments,  class  room  discus- 
sion and  reports,  as  is  the  case  in  most  graduate  work.  Mock 
cases  may  be  introduced  and  have  been  introduced  to  some  ex- 
tent at  the  Tuck  School,  in  order  to  familiarize  the  student 
with  actual  work,  but  I  believe  this  is  little  more  than  a  make- 
shift. In  the  Tuck  School  the  need  of  familiarizing  the  stu- 
dent with  actual  conditions  has  led  to  a  significant  development 
which  we  call  clinical  work.  This  form  of  training  is  necessary, 
and  noAV  used  by  us  in  all  branches  of  business  training.  I 
believe  it  is  especially  essential  to  high  grade  instruction  for 
this  profession.  Our  experience  with  the  clinical  work  has 
more  than  fulfilled  expectations,  and  w^e  are  assured  by  gradu- 
ates that  this  phase  of  a  man's  training  has  proved  to  be  the 
most  valuable  of  all.  The  instructor  is  business  manager,  or 
executive  secretary,  of  each  of  a  number  of  active  organiza- 
tions in  cities  and  towns  in  the  vicinity  of  the  Tuck  School,  al- 
though most  of  the  work  of  each  is  in  charge  of  a  student.  The 
instructor  performs  a  supervisory  and  advisory  function  simi- 
lar to  that  of  the  efficiency  engineer  in  a  manufacturing  plant. 
He  also  takes  charge  of  some  of  the  more  important  matters 
and  supplements  the  work  of  the  students  during  times  of  press 
of  work  at  the  school  and  during  vacation  periods.  The  signifi- 
cant feature  of  the  "clinic  work''  is  that  each  student  is  in 
charge  of  an  organization  in  which  he  comes  in  contact  with 
that  wide  range  of  problems  which  the  full-time  secretary 
faces  and  for  the  success  of  which  he  is  responsible. 

Drawing  Men  From  Colleges 

There  are  sufficiently  large  and  active  organizations  under 
able  management  to  absorb  each  year  a  score  or  two  of  the 
best  men  turned  out  by  the  colleges.  These  are  the  men  who 
have  trained  especially  for  this  work.  There  are  also  numer- 
ous smaller  organizations  which  can  afford  only  men  new  to 
the  profession,  yet  which  offer  great  opportunities  for  the  young 
secretary.  Such  organizations  should  seek  the  best  trained 
and  most  able  men  available.  By  taking  men  from  the  same 
institution  year  after  year  they  would  get  men  similarly  trained 
and  with  similar  ideas.  Many  organizations  now  accomplish 
little  because  they  are  managed  by  a  new  and  inexperienced 
man  each  year  or  two  who  has  ideas  different  from  those  of  his 


HOW  TO  FAIL  AS  A  SECRETARY.  435 

predecessor,  and  who  keeps  his  organization  back  while  he 
learns  his  profession.  This  work  might  be  developed  further, 
so  that  each  small  organization  in  each  section  of  the  country 
might  cooperate  with  some  college  or  university  of  the  district, 
and  exchange  advice  and  organization  experience  for  the  serv- 
ices of  the  yearly  output  of  graduates. 

If  any  definite  ideas  can  be  sifted  from  this  discussion, 
they  are  these:  There  is  cooperative  work  to  be  done  by  the 
profession  and  the  colleges.  The  work  is  more  urgent  because 
of  the  tendency  of  colleges  to  introduce  a  course  of  this  kind. 
Evidently  there  is  need  of  something  of  the  nature  of  a  joint 
committee  of  educators  and  secretaries,  including  perhaps  a 
representative  from  the  Chamber  of  Commerce  of  the  United 
States,  which  is  undertaking  to  gather  facts  and  principles  con- 
cerning proper  methods  of  organization  work  and  management, 
to  consider  the  subject  of  the  best  matter  for  instruction.  Such 
a  work  might  be  perpetual  in  its  nature  because  of  the  almost 
bewildering,  rapid  advancement  in  this  work.  A  similar  com- 
mittee might  do  valuable  service  on  the  problem  of  so  placing 
college  graduates  with  special  training  in  such  positions  that 
the  graduates  on  the  one  hand,  and  the  profession  on  the  other, 
will  reap  maximum  benefits. 


How  to  Fail  as  a  Secretary 

By  MUNSON  HAVENS 

It  requires  no  training  whatever  to  fail  as  a  secretary.  A 
course  in  the  Harvard  School  of  Business  Administration  or 
the  similar  courses  at  Dartmouth,  the  University  of  Chicago, 
and  other  colleges  are  unnecessary.  The  proper  view  to  take 
is  that  such  training  is  a  waste  of  time.  Anybody  can  be  a 
secretary  if  he  thinks  he  can,  and  the  less  preparation  he  makes, 
the  sooner  he  begins  to  draw  the  salary. 

It  is  a  good  idea  to  tell  the  committee  which  is  examining 
the  applicants  for  the  job  that  the  experience  you  have  had  is 
precisely  the  experience  to  fit  any  man  for  that  work.  If  you 
have  been  in  newspaper  Avork,  you  can  throw  the  glamour  of 
that  enchanting  profession  so  completely  around  your  own 
personal  shortcomings  as  to  conceal  them  from  the  shrewdest. 


436  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

The  thing  to  do  is  to  get  the  job.  If  you  think  it  will  help  you, 
throw  in  some  little  remark  as — 

"When  I  was  in  Washington  for  the  Daily  News,  etc.,  etc./' 
— Don't  hesitate  by  reason  of  the  fact  that  the  three  days  you 
spent  in  Washington  was  the  only  time  you  were  ever  there, 
and  that  the  regular  correspondent  of  the  Daily  News  made 
an  appointment  to  lunch  with  you  at  the  Willard  at  your  ex- 
pense, and  forgot  to  keep  the  appointment. 

If  you  want  to  graduate  from  railroad  work  into  a  secre- 
taryship, it  is  a  very  good  idea  to  speak  of  seeing  poor  Cassatt 
just  before  he  died.  Never  refer  to  Mr.  Willard  except  as  Dan. 
And  generally  convey  the  impression  that  while  you  did  not 
have  the  title,  you  were  a  sort  of  unofficial  vice-president. 

Inasmuch  as  training  is 'not  essential  to  get  the  job,  it 
follows  logically  that  it  is  not  essential  to  keep  it.  Your  edu- 
cation is  complete,  and  all  you  have  to  do  is  your  work.  You 
may  hear  of  some  poor  fish  who  is  spending  three  nights  a  week 
at  law  school,  specializing  in  commercial  law.  The  secretary 
in  a  neighboring  city  may  be  taking  a  university  extension 
course  in  transportation  or  foreign  trade  or  some  branch  of 
civics.  But  the  thing  for  you  to  do  is  to  show  the  town  that 
your  school  days  are  long  since  past.  Otherwise  the  town  might 
think  that  there  was  some  department  of  human  knowledge 
that  you  had  not  mastered,  and  this  is  precisely  the  inference 
that  you  wish  to  avoid. 

You  should  convince  the  board  of  directors  that  it  is  neces- 
sary for  you  to  have  an  assistant  before  the  work  develops.  Do 
not  let  the  rush  catch  you  unawares.  The  directors  will  have 
a  greater  respect  for  you  if  you  tell  them  frankly  and  firmly 
that  you  cannot  be  bothered  with  details,. 

Having  settled  down  at  jour  desk,  it  becomes  your  duty 
and  privilege  to  choose  an  assistant.  Be  careful  not  to  get  too 
good  a  man.  At  best  he  might  leave  you  in  a  year  or  two  for  a 
better  opportunity.  At  worst  he  might  become  ambitious  to 
succeed  you.  Be  careful  that  his  training  is  the  same  as  yours. 
Otherwise  he  will  perhaps  know  more  about  his  department 
than  you  do.  You  must  let  your  assistant  know  from  the  be- 
ginning that  you  are  the  boss.  Do  not  give  him  the  impres- 
sion that  he  is  a  partner  in  the  concern.  If  he  prepares  a  good 
reporj  for  a  committee,  be  sure  to  make  enough  alterations  in 
it  so  that  you  can  present  it  to  the  committee  as  your  joint 


HOW  TO  FAIL  AS  A  SECRETARY.  437 

production.  Of  course  by  the  time  it  has  reached  the  board  of 
directors,  it  has  ceased  to  be  a  joint  production.  This  method 
will  prevent  your  assistant  from  receiving  empty  compliments 
that  might  swell  his  head. 

Make  it  a  point  that  your  assistant  shall  always  sign  your 
name  to  the  office  mail.  Let  him  understand  from  the  begin- 
ning that  you  demand  his  respect  and  do  not  care  a  hang  for 
his  affection.  Give  him  all  the  hard  work  to  do,  but  keep  him 
out  of  the  lime-light.  He  should  never  be  allowed  to  give  a 
definite  answer  in  your  absence  from  the  office.  This  may  de- 
lay the  service  somewhat,  but  will  prevent  your  being  made 
responsible  for  his  fool  mistakes. 

After  your  assistant  has  been  with  you  for  a  while  you 
should  be  careful  to  explain  to  him  how  disloyal  it  is  to  the 
organization  for  him  to  consider  any  offer  of  another  position 
without  insisting  that  the  other  employer  shall  first  take  the 
matter  up  with  you. 

With  regard  to  his  salary,  always  remember  that  you  are 
spending  other  people's  money.  Be  careful  also  that  his  salary 
never  comes  within  a  measurable  distance  of  your  own.  It  is 
subversive  of  discipline  to  have  an  assistant  who  is  paid  near- 
ly as  well  as  yourself. 

There  are  many  other  points  that  should  be  borne  in  mind 
in  dealing  with  your  assistant,  but  it  is  not  necessary  to  speak 
of  but  one  other.  You  should  always  refer  to  him  as  "my  as- 
sistant.'^ This  makes  him  proud  and  glad  and  happy.  Simi- 
larly, you  should  always  speak  of  the  stenographer  as  "my 
secretary."  Although  she  may  keep  the  books  and  handle  the 
money,  she  would  much  rather  have  you  call  ber  "my  secre- 
tary" than  refer  to  her  as  the  cashier. 

You  should  realize  from  the  beginning  of  your  work  that 
your  personality  is  the  dominant  one.  You  are  forced  to  ad- 
mit that  you  have  a  brilliant  personality,  and  it  would  be  un- 
fair to  the  organization  if  you  did  not  give  it  the  advantage 
of  the  full  weight  of  your  personality.  This  point  is  suscep- 
tible of  a  great  many  applications.  For  example:  The  letter- 
head of  the  organization  may  contain  the  names  of  the  other 
officers,  but  yours  should  either  be  separated  from  these  by  a 
space,  or  else  should  be  printed  in  larger  letters.  There  does 
not  seem  to  be  any  real  reason  why  the  names  of  the  other 
officers  should  appear  on  the  letterhead  but  it  has  been  custom- 


438  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

ary  to  have  them  there  and  there  is  no  particular  objection  to 
it.  It  is  a  good  idea  to  have  a  sign  on  the  door  of  3^our  private 
office — "Secretary's  Office."  A  picture  of  this  office  with  your- 
self seated  at  your  desk  should  be  printed  occasionally  in  the 
annual  report.  A  touch  of  verisimilitude  will  be  added  to 'the 
picture  if  your  assistant  is  also  shown  therein,  humbly  hand- 
ing you  a  paper.  Or  your  secretary  may  be  seen  in  the  picture 
taking  dictation.  In  either  case,  however,  the  side  or  back  of 
the  other  person  should  be  turned  toward  the  camera  lest  the 
larger  effect  be  lost. 

The  newspaper  men  should  be  encouraged  to  use  your 
name  freely.  It  is  a  principle  of  present  day  newspaper  work 
that  a  "story''  must  be  "hung  upon  an  individual."  Obviously 
it  is  your  duty  to  stand  in  Avith  the  newspaper  men  and  pre- 
serve their  interest  in  the  work  of  your  organization,  and  you 
must,  therefore,  yield  to  this  practice,  however  repugnant  it 
may  be  to  you  personally.  You  could,  of  course,  persuade  the 
newspaper  men  to  hang  the  stor\^  on  the  president  or  the  vice- 
president,  or  the  chairman  of  a  committee,  but  there  is  no  rea- 
son why  their  finer  feelings  should  be  violated — their  sacri- 
fices are  sufficient  as  it  is;  you  ought  not  to  shirk  any  of  the 
disagreeable  features  of  your  Avork. 

In  meetings  of  committees,  or  of  the  board  of  directors, 
you  should  smoke  a  cigar  or  cigarette  while  reading  the  min- 
utes. This  will  show  the  directors  or  committeemen  that  you 
regard  keeping  the  records  of  the  organization  as  your  least 
important  duty.  It  gives  you  an  air  of  easy  nonchalance  that 
is  highly  impressive.  One  meeting  will  be  enough  to  convince 
any  board  of  directors  that  you  are  from  the  big  city. 

Having  presented  the  subject  for  discussion  yourself  for 
the  very  obvious  reason  that  you  can  do  it  so  much  better  than 
the  president,  your  voice  should  also  be  heard  first  in  the  dis- 
cussion. They  are  paying  for  your  opinion,  and  they  are  en- 
titled to  it.  No  matter  how  many  questions  are  presented, 
yours  should  be  the  A^oice  of  first  and  final  authority.  If  you 
can  manage  to  couaw  the  impression,  without  actually  saying 
it,  that  each  of  these  questions  has  had  your  careful  considera- 
tion long  before  it  became  apparent  to  the  common  mind  that 
there  was  any  such  question  looming  toward  the  future,  it  is 
well  to  do  so.  Since  it  is  a  fact  that  you  foresaw  that  the  as- 
sassination  of  the  Arch   Duke  would   precipitate  the   Great 


HOW  TO  FAIL  AS  A  SECRETARY.  439 

War,  is  it  not  false  modesty  to  try  to  conceal  it?  Since  it  is 
a  fact  that  you  had  conclusive  evidence  that  the  Germans  woi\ld 
sign  the  armistice,  why  appear  as  ignorant  as  the  common  run 
of  men?  i 

In  discussing  these  various  questions  it  is  a  good  idea  for 
you  to  say  a  few  words  between  the  remarks  of  each  of  the 
other  directors.  In  this  way  you  make  certain  that  your  full 
thought  shall  be  revealed.  In  order  that  there  may  be  no  doubt 
as  to  Avhose  opinions  are  being  voiced,  begin  your  sentences 
with  the  personal  pronoun,  "I,''  or  as  a  pleasing  variation  you 
might  say,  "It  is  my  opinion,  etc.,  etc.,''  or  ''It  is  the  conclusion 
I  have  reached,  etc.,  etc.'' 

It  will  occasionally  happen  that  as  the  discussion  proceeds 
your  views  may  undergo  a  change.  Your  views  are  not  altered 
by  the  opinions  of  others  present,  but  your  mind  works  more 
clearly  under  the  stimulation  of  the  meeting,  and  in  this  event 
justice  to  yourself  requires  that  after  all  is  said  and  done,  you 
should  sum  up.  It  is  this  clear,  far-seeing  all-comprehending 
statement  that  your  directors  need  to  clarify  their  minds,  un- 
used as  they  are  to  any  other  intellectual  processes  than  those 
required  for  mere  money-making. 

In  short,  by  these  methods  and  others,  we  should  maintain 
the  conviction  in  the  minds  of  our  employers  that  we  are  men 
among  men,  their  equals  or  their  superiors,  the  acknowledged 
leaders  of  the  thought  of  the  community. 

While  we  need  not  dwell  on  this  phase  of  the  subject,  we 
should  remember  that  the  president  should  always  be  referred 
to  as  "my  president,"  and  the  board  referred  to  as  "my  direc- 
tors." This  will  make  them  proud  and  glad  and  happy.  Anoth- 
er little,  simple,  helpful  rule  is  always  to  refer  to  the  office 
of  the  organization  as  "my  office." 

When  the  organization  is  invited  to  be  represented  at  a 
meeting  or  a  dinner,  and  the  occasion  for  a  speech  seems  immi- 
nent, you  should  realize  that  while  the  name  of  the  president 
might  be  more  attractive  on  the  program,  there  is  always  the 
danger  that  he  will  "spill  the  beans,"  and  it  is  your  duty  to 
protect  the  organization.  Go  yourself.  When  your  president 
and  your  directors  and  the  members  see  you  sitting  up  at  the 
speakers'  table,  it  makes  them  proud  and  glad  and  happy. 

The  secretary  should  realize  fully  the  value  of  his  own  time. 
It  is  paid  for  with  other  people's  money,  and  it  is  a  part  of  his 


440  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

duty  to  see  that  their  money  is  not  wasted.  The  president 
and  the  vice-president  should  not  be  encouraged  to  spend  too 
much  time  at  your  office.  There  are  only  so  many  hours  in 
the  day,  and  you  won't  get  your  work  done  if  you  have  to  spend 
a  lot  of  time  talking  to  them,  or  worse  still,  listening  to  them. 
Make  the  president  and  the  directors  feel  that  they  have  hired 
you  to  run  the  organization,  and  that  you  propose  to  run  it. 

Do  not  cultivate  a  habit  of  being  a  good  listener.  It  is 
perfectly  obvious  that  a  good  listener  will  receive  a  lot  of  con- 
fidences. Into  his  ears  will  be  poured  the  current  history  of 
the  motives,  the  ambitions,  the  jealousies,  the  meannesses  and 
the  occasional  greatnesses  of  his  many  visitors.  It  is  a  mistake 
to  suppose  that  this  fragmentary  comment  helps  to  form  in 
your  mind  a  composite  picture  of  your  town.  With  your  pow- 
ers of  deduction  you  can  form  a  far  truer  picture  for  yourself 
if  your  visitors  will  refrain  from  dropping  into  your  office  to 
express  their  views  on  the  topics  of  the  day.  It  may  be  true 
that  the  man  who  receives  many  confidences  is  the  man  in  whom 
the  community  has  confidence,  but  it  is  a  deadly  bore  just  the 
same,  and  it  is  a  very  good  idea  for  the  secretary  to  have  a  sign 
on  his  desk,  that  he  who  runs  in  may  read — "This  is  my  busy 
day." 

Indeed,  the  secretary  should  always  appear  to  be  very  busy. 
He  should  walk  rapidly  through  the  streets,  nodding  curtly  to 
those  who  address  him.  The  man  who  stops  him  on  the  street 
should  receive  short  shrift.  If  he  wants  to  see  you,  he  knows 
where  your  office  is.  People  are  impressed  when  you  show  them 
that  you  are  giving  them  only  half  of  your  attention  because 
of  the  momentous  interests  that  are  hanging  by  a  hair,  awaiting 
your  word.  You  should  always  have  it  in  mind  that  you  are  not 
the  unofficial  advisor  of  Tom,  Dick  and  Harry.  If  they  are  not 
members  of  your  organization  they  have  no  right  to  take  your 
time. 

Occasionally  the  importance  of  your  duties  should  be  im- 
pressed upon  the  most  influential  men  in  town.  One  way  of 
doing  this  is  to  tell  the  banker  that  you  cannot  see  him  before 
two  o'clock.  A  still  better  way  is  to  have  your  secretary  in- 
form the  judge  that  your  calendar  for  the  day  is  full,  but  that 
you  would  be  delighted  to  see  him  at  ten  o'clock  on  the  follow- 
ing morning. 

You  should  keep  it  in  mind  that  while  your  town  is  the 


HOW  TO  FAIL  AS  A  SECRETARY.  441 

best  town  in  the  world  today  in  which  to  operate  a  factory  or 
build  a  home,  it  was  a  dead  town  before  you  came  to  it.  Nor 
need  the  fact  that  it  is  the  best  tow^n  in  the  world  deter  you 
from  looking  for  a  larger  opportunity  elsewhere.  Now  that 
you  have  put  the  town  on  its  feet,  it  is  perfectly  proper  for  you 
to  tell  the  influential  people  of  a  competing  town  how  dead  it 
was  before  you  got  there,  aud  you  may  even  shake  your  head 
a  little  despondently  over  its  future  if  once  your  guiding  hand 
is  removed  from  the  helm  of  its  destination. 

The  secretary  should  get  mixed  up  in  politics.  A  very  good 
way  to  do  is  to  advise  everybody  to  pull  for  a  certain  candidate 
for  a  certain  office — let's  say  mayor.  When  your  candidate  is 
defeated  and  the  other  fellow  is  elected,  it  will  help  you  to  get 
what  you  want  from  the  incoming  administration.  If  you  find, 
hoAvever,  that  the  administration  resents  your  having  been  on 
the  opposite  side,  do  not  admit  a  mistake,  but  on  the  contrary 
attack  each  policy  of  the  administration  as  it  develops.  It 
won't  do  you  any  harm  to  let  the  administration  know  that  if 
they  want  you  to  work  with  them  they  have  got  to  come  to  you. 

A  good  deal  might  be  said  (outside  of  the  political  phase 
of  the  question)  of  the  relations  of  the  secretary  of  a  commer- 
cial organization  with  men  in  public  office.  But  certain  gen- 
eral observations  can  be  made.  No  matter  which  party  is  in 
power,  it  is  a  good  idea  to  constantly  urge  large  expenditures 
of  public  moneys  for  the  objects  in  which  your  organization  is 
interested,  and  at  the  same  time  let  it  be  clearly  understood 
that  you  think  the  city  administration  is  wasteful  and  extrava- 
gant, and  that  the  tax  rate  is  far  too  high. 

In  dealing  with  the  mayor  and  the  members  of  the  city 
council,  especially  when  you  are  accompanied  by  a  committee, 
you  should  call  these  public  officials  by  their  first  names.  In 
order  to  further  illustrate  your  familiarity  with  them  it  is  a 
good  idea  to  steal  a  cigar  from  the  vest  pocket  of  one  of  them. 
These  attentions  on  your  part  wall  make  them  proud  and  glad 
and  happy. 

Always  keep  your  hat  on  at  the  city  hall.  The  politicians 
do  it,  and  you  are  just  as  good  as  they  are.  If  the  mayor  hap- 
pens to  disagT'ee  with  your  committee  on  the  policy  recommen- 
ded, he  should  be  made  to  understand  that  a  difference  on  this 
point  constitutes  a  definite  split  between  himself  and  the  or- 
ganization, that  it  will  never  be  forgiven,  that  your  organiza- 


442  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

tion  will  have  no  further  dealings  with  him,  and  that  you  pro- 
pose to  fight  him  at  the  next  election.  You  can  add  that  you 
carry  the  business  men's  votes  of  the  town  in  your  pocket. 
This  may  have  the  effect  of  solidifying  the  workingmen's  vote 
against  your  organization  if  the  mayor  is  clever  enough  to 
handle  matters  in  that  way,  but  even  if  you  are  beaten  at  the 
election,  you  have  the  satisfaction  of  having  had  the  intelli- 
gent portion  of  the  community  behind  you. 

You  should  steadily  advise  your  organization  to  keep  out 
of  the  labor  question.  AYhen  the  manufacturei's  in  your  tov^^n 
argue  that  this  is  the  largest  question  before  the  town  or  the 
state,  or  indeed  the  country,  you  can  call  their  attention  to 
the  fact  that  while  it  is  the  largest  question,  there  are  other 
questions,  and  that  if  your  organization  takes  sides  on  the 
labor  question  it  will  not  have  as  great  an  influence  in  de- 
termining other  questions.  In  discussing  the  labor  question 
with  the  manufacturer,  make  him  understand  that  you  see  no 
difference  between  collective  bargaining  and  trades  unionism 
— no  difference  between  socialism  and  anarchy,  and  that  you 
agree  with  him  that  an  eight-hour  day,  profit  sharing,  pension- 
systems  and  welfare  work  are  the  soap  bubbles  blown  from  the 
pipes  of  impractical  dreamers  who  have  never  met  a  pay-roll 
or  paid  a  dividend. 

Every  little  while  one  of  these  hard-headed  manufacturers 
will  surprise  you  by  conceding  an  eight-hour  day  or  a  share  of 
the  profits  to  his  employes.  This  is  simply  an  evidence  that 
another  good  man  has  gone  wrong  and  you  can  join  all  the 
other  manufacturers  in  town  in  condemning  his  treachery  tc 
his  own  class. 

Always  be  certain  that  any  new  line  of  work  you  take  up 
originates  within  your  own  organization.  If  you  admit  to  n 
committee  or  to  the  directors  that  this  is  an  idea  which  has 
been  worked  out  in  Rochester,  New  Orleans,  or  Seattle,  they 
will  not  give  you  credit  for  originality.  As  a  general  policy 
it  is  wise  not  to  know  too  much  about  what  other  organizations 
are  doing.  It  is  apt  to  have  its  effect  on  your  work ;  to  deprive 
it  of  your  own  individuality.  It  may  link  you  up  with  some 
other  town  that  is  doing  the  same  thing,  and  consequently  make 
it  less  clear  that  the  work  and  policy  of  your  organization  are 
unique. 

With  regard  to  state  organizations  and  national  organiza- 


HOW  TO  FAIL  AS  A  SECRETARY.  443 

tions,  the  insular  point  of  view  is  the  proper  one.  Your  town 
is  a  self-sufficing  entity,  and  so  is  your  organization.  You  are 
not  dependent  on  the  other  towns  in  the  state,  and  there  is  no 
advantage  to  your  organization  in  being  a  part  of  a  national 
organization.  A  certain  modification  of  this  view  is  possible, 
within  limitations.  FOr  example,  if  you  are  put  on  the  board 
of  directors  of  the  state  organization,  it  becomes  a  correct  policy 
for  your  organization  to  support  the  state  organization,  but  on 
the  other  hand  if  the  by-laws  of  the  state  organization  are  not 
drawn  just  to  suit  you,  you  should  keep  the  other  members  of 
the  board  constantly  in  mind  of  the  danger  of  your  resignation. 
With  regard  to  the  national  organization,  it  is  well  to  consider 
whether  it  would  not  be  worth  while  for  your  organization  to 
pay  dues  in  the  national  organization  in  order  that  you  may 
accompany  your  president  or  councillor  each  year  to  the  annual 
meeting  in  Washington  or  Atlantic  City.  Your  presence  there 
will  have  its  effect  in  keeping  the  national  organization  on  a 
straight  course. 

In  every  state  organization  and  every  national  organization 
you  should  keep  your  eye  on  the  clique  that  runs  the  organiza- 
tion. All  organizations  (except  yours)  are  run  by  a  clique. 
There  is  great  need  for  an  insurgent  movement  to  break  the 
slate  in  all  of  these  organizations. 

A  very  good  slogan  for  such  a  movement  is  that  all  of  the 
officers,  committee  appointments,  etc.,  are  held  by  the  larger 
towns ;  that  the  smaller  towns  get  no  recognition,  and  that  the 
real  bone  and  sinew  of  the  nation  is  in  the  smaller  towns. 
An  insurgent  movement  requires  leadership,  and  if  you  know 
just  how  the  matter  ought  to  be  handled,  there  is  no  reason 
why  you  should  shrink  from  the  duty. 

At  the  meetings  of  state  organizations,  and  whenever  pos- 
sible in  the  national  organization,  it  is  particularly  desirable  to 
be  heard  from  the  floor  at  least  once,  and  if  possible  oftener. 
The  rest  of  the  time  can  be  spent  in  the  ante-room  just  outside 
the  convention  hall. 

Speaking  of  insurgents  reminds  one  that  a  paper  of  this 
sort  ought  to  consider  how"  they  should  be  dealt  with.  Not 
that  any  of  us  ever  have  insurgents  in  our  ow^n  organizations, 
but  w^e.are  asked  occasionally  by  the  other  fellow^  how^  to  deal 
with  this  problem.  It  should  be  realized  in  the  first  place  that 
every  insurgent  movement  is  destructive  in  character,  it  aims 


444  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

to  overthrow  the  whole  policy  of  the  organization,  and  to  sub- 
stitute for  that  wise  policy  the  selfish  interests  of  the  few  in- 
dividuals who  compose  the  insurgent  group.  They  want  to 
use  the  organization  to  promote  and  foster  their  own  personal 
and  private  aims.  They  cannot  use  the  organization  for  that 
purpose  so  long  as  you  are  the  secretary.  And  for  that  reason 
they  want  to  get  your  goat.  In  order  to  prevent  insurgency 
from  ever  gaining  a  foothold,  the  following  precautions  are  de- 
sirable: In  the  first  place  the  nominating  committee  lo  pro- 
pose new  officers  should  always  be  appointed  by  the  secretary. 
It  may  be  necessary  to  do  a  little  window-dressing  in  order  to 
get  this  through,  but  with  all  your  experience  in  this  line  of 
work,  if  you  don't  know  who  ought  to  be  on  the  nominating 
committee,  who  in  the  world  does  know?  Then  the  secretary 
should  always  meet  Avith  the  nominating  committee,  and,  if  pos- 
sible, ought  to  see  each  member  personally  before  the  first  meet- 
ing in  order  that  the  meeting  may  move  smoothly  with  entire 
harmony  and  without  any  unnecessary  waste  of  the  valuable 
time  of  the  members  of  the  committee.  At  least  two-thirds  of 
the  board  of  directors  should  be  renominated  each  year.  This 
helps  to  maintain  the  consecutive  character  of  the  organization's 
work.  Its  policy  otherwise  might  be  erratic.  The  same  per- 
sonnel on  committees  should  be  continued  year  after  year  to 
give  further  assurance  of  a  continuous  policy  within  the  organi- 
zation. 

If  an  insurgent  movement  rises  in  spite  of  those  precau- 
tions, various  steps  can  be  taken  that  will  be  helpful.  For 
example,  if  the  insurgents  demand  an  open  meeting,  the  meet- 
ing can  be  called  for  a  month  later  to  allow  time  for  the  first 
violence  of  the  movement  to  die  down.  When  the  meeting  is 
finally  called,  it  may  be  called  for  an  unusual  place,  at  an  un- 
usual hour,  and  the  notices  can  be  issued  to  part  of  the  mem- 
bers just  a  little  too  late  for  them  to  receive  them.  The  impor- 
tant thing  to  remember  in  connection  with  this  treatment  of 
insurgents  is  that  they  have  no  memories.  Once  an  insurgent 
movement  is  crushed,  it  is  crushed  forever.  Moreover,  the 
average  insurgent  is  the  kind  of  a  man  who  is  cowed  by  trea- 
ting him  rough.  Above  all  things,  it  should  never  be  admitted 
that  the  insurgents  have  any  just  cause  for  complaint  against 
the  organization.  It  should  never  be  admitted  that  the  organi 
zation  has  ever  made  a  mistake,  and  the  insurgents  should  never 


HOW  TO  FAIL  AS  A  SECRETARY.  445 

be  given  representation  on  a  nominating  committee  or  a  board 
of  directors  or  in  any  position  of  honor  or  trust. 

You  should  always  take  yourself  very  seriously.  A  sense 
of  humor  in  a  secretary  is  badly  misplaced.  There  are  too  many 
references  to  the  "geniar-  secretary.  People  do  not  seem  to 
realize  our  responsibilities.  They  get  the  impression  somehow 
— certainly  through  no  fault  of  our  own — that  the  president 
and  the  directors  and  the  committees  do  the  work.  One  of  the 
most  irritating  assumptions  that  our  members  seem  to  have 
is  that  there  is  another  fellow  around  the  corner  who  can  do 
our  work  just  as  well  as  we  can,  and  maybe  a  little  better.  Now 
the  secretary  who  does  not  take  himself  seriously  encourages 
these  illusions  with  reference  to  our  vocation.  There  is  a  book 
by  one  Erasmus— "In  Praise  of  Follie."  No  secretary  should 
ever  read  it. 

Remember  in  your  work  that  the  main  thing  that  counts  in 
a  town  is  the  impression  that  it  makes  on  visitors.  And  in  this 
connection  the  visitor  must  be  so  conducted  around  the  toAvn 
that  he  will  not  see  the  bad  spots,  which  can,  therefore,  be  left 
undisturbed  indefinitely.  The  folks  at  home  may  knoAv  about 
them,  but  they  are  used  to  them. 

A  large  part  of  our  work  should  be  aimed  toward  attracting 
tourist  travelers.  Emphasis  should  be  placed  on  the  fact  that 
the  town  can  be  reached  from  everywhere  and  that  the  visitor 
may  depart  thence  for  anywhere.  Waterworks  systems,  sewage 
systems,  and  miles  of  pavements  are  of  particular  interest  to 
cultivated  tourists,  and  should,  therefore,  be  referred  to  liber- 
ally in  your  printed  matter. 

This  observation  applies  also  to  the  location  of  a  factory. 
Factories  are  always  located  where  there  is  pure  water  to  drink, 
a  beautiful  Soldiers'  Monument,  and  a  fine  surrounding  agri- 
cultural community.  Comparative  statistics  should  be  avoided 
in  literature  issued  by  commercial  organizations.  Never  com- 
pare the  number  of  miles  of  pavements  in  your  town  with  the 
number  of  miles  of  pavements  in  the  other  toAvns  of  correspond- 
ing size.  Never  compare  the  tax. rate  in  your  town  with  any 
other  tax  rate  in  the  world.  If  the  prospective  tourist  or  the 
prospective  manufacturer  wants  comparative  statistics,  let  him 
look  them  up  himself — it  is  no  business  of  yours.  Your  business 
is  to  advertise  your  town,  not  the  other  fellow's  town. 

Everv  little  while  a  visitor  comes  to  town  and  is  lavishlv 


446  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

entertained  by  the  organization,  and  is  shabby  enough  to  make 
criticisms  of  the  town.  Of  course  no  attention  should  be  paid 
to  these  criticisms.  The  facilities  that  the  visitor  complains 
of  are  good  enough  for  our  folks  here  at  home,  and  if  they  are 
good  enough  for  us,  they  are  good  enough  for  anybody.  You 
knew  that  fellow  had  a  swelled  head  the  minute  you  laid  eyes 
on  him. 

The  test  of  a  successful  organization  is  its  size.  The  bigger 
the  organization,  the  better  it  is.  If  you  have  a  tow^n  of  30,000 
people  and  there  are  1,000  members  of  your  organization,  it  is 
safe  to  say  that  you  have  an  organization  that  is  absolutely 
democratic,  in  which  the  millionaire  rubs  elbow^s  with  the  work- 
man, and  of  course  the  moment  they  join  your  organization 
they  will  absolutely  agree  on  all  matters  of  policy  and  then  go 
hand  in  hand  as  brothers  should. 

A  membership  campaign  every  year  is  a  splendid  thing.  It 
keeps  up  the  interest  in  the  organization,  and  gives  everybody 
something  to  do.  If  you  have  taken  in  300  members  during 
the  year,  that  is  an  accomplishment  that  ought  to  satisfy  any- 
body. Anybody  can  see  what  the  year's  work  has  done  for  the 
town. 

The  dues  of  an  organization,  on  the  contrary,'  should  be 
kept  as  low  as  possible.  It  goes  w^ithout  saying  that  if  you  have 
very  high  dues,  you  will  not  have  a  large  number  of  members. 
Of  course,  there  ought  to  be  a  law  compelling  citizens  to  join 
our  organization,  but  in  the  absence  of  such  a  law,  they  have  to 
be  attracted  in  because  it  does  not  cost  much.  Occasionally 
3^ou  wdll  hear  somebody  say  that  the  amount  of  the  dues  should 
be  determined  by  the  aggregate  revenue  required  for  the  w^ork 
to  be  done,  divided  among  the  number  of  men  wiio  are  really 
interested  in  getting  the  w^ork  done.  Of  course  any  organiza- 
tion expert  like  yourself  knows  tliat  this  statement  is  a  fallacy. 
In  the  first  place  how  can  you  tell  what  work  you  want  to  do 
until  you  see  how  much  money  you  have  to  do  it  wdth?  And  in 
the  second  place  it  stands  to  reason  that  the  more  people  you 
get  into  the  organization,  th^  more  work  you  can  do. 

Every  secretary  should  have  an  organization  chart.  This 
chart  should  show  the  membership  as  the  foundation,  then  the 
board  of  directors,  executive  committee,  officers,  committees, 
bureaus,  etc.,  etc.  The  secretary's  place  on  the  chart  should 
not  be  bunched  with  the  other  officers.     This  chart  is  very 


HOW  TO  FAIL  AS  A  SECRETARY.  447 

helpful  ill  the  practical  work  of  the  organization.  It  is  espe- 
cialh'  helpful  if  different  colored  inks  are  used.  The  best  colors 
are  red,  blue,  purple  and  green. 

If  at  the  end  of  the  year,  however,  you  find  that  the  direc- 
tors are  not  Avholly  satisfied  with  the  results  of  the  year's  work, 
it  is  well  to  consider  changing  the  color  of  the  ink  used  on  dif- 
ferent parts  of  the  chart.  The  chart  is  equally  efficient  in  get- 
ting factories,  securing  conventions,  and  promoting  public  im- 
provements. If  the  chart  indicates  that  the  committee  on  mu- 
nicipal atTairs  is  responsible  to  the  board  of  directors,  and 
reports  to  that  body,  it  is  relatively  unimportant  whether  the 
committee  on  municipal  affairs  ever  does  report  to  the  board  of 
directors  or  not.  The  main  thing  is  to  get  the  correct  theory. 
For  example,  an  organization  that  had  a  chart  which  showed 
that  the  board  of  directors  reported  to  the  municipal  affairs 
committee  could  not  possibly  succeed  even  though  in  practice 
the  processes  were  reversed. 

Whenever  one  of  your  members  calls,  show  him  the  chart. 
It  gives  him  a  chance  to  turn  over  in  his  mind  the  matter 
that  he  came  in  to  see  you  about.  When  he  finally  presents 
the  matter  that  is  on  his  mind,  you  can  either  show  him  that 
it  is  on  the  chart,  in  which  case  he  ought  to  be  satisfied,  or 
else  you  show  him  that  it  is  not  on  the  chart,  in  which  case 
you  are  perfectly  satisfied. 

Next  in  importance  to  the  chart  is  the  card  list  of  the 
membership.  This  card  list  should  be  comprehensive,  and 
sliould  include  on  each  card  a  full  history  of  the  public  and  pri- 
vate life  of  each  member.  Securing  this  information  will  take 
a  lot  of  the  secretary's  time.  But  nothing  makes  a  member  so 
proud  and  glad  and  happy  as  to  write  the  history  of  his  life  on 
a  sLx  by  four  card.  You  can  increase  his  pleasure  somewhat  by 
printing  at  the  bottom  of  the  card — ^Tlease  write  on  one  side 
only."  Having  secured  all  these  cards,  they  should  be  filed 
carefully.  When  you  come  to  make  up  the  committees  with 
the  assistance  of  the  president  (not  that  his  assistance  is  im- 
portant at  all),  all  the  cards  should  be  laid  out  on  your  desk 
in  alphabetical  order,  and  each  life  history  should  be  carefully 
considered  in  connection  with  each  committee  appointment. 
The  president  should  not  be  permitted  to  overlook  the  impor- 
tance of  the  scientific  method.  He  will  probably  think  that 
the  fact  that  he  has  known  Tom  Brown  or  Dick  Jones  all  their 


448  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 


lives,  or  that  Bill  Smith  and  he  went  to  school  toj?ether,  has 
ig  on  the  matter.    You  know, 


some  bearinfir  on  the  matter.    You  know,  and  he  must  be  made 


to  know,  that  there  is  a  scientific  method  of  doing  this  sort 
of  thing,  and  that  the  card  list  represents  that  method.  That 
is  what  you  are  there  for. 

The  secretary  should  always  have  at  least  one  hobby.  And 
that  hobby  should  be  the  focal  point  of  the  organization's  ac- 
tivities. It  may  be  civil  service,  the  city  manager  form  of  gov- 
ernment, drinking  fountains  in  the  parks,  or  the  reform  of 
domestic  architecture.  But  whatever  the  hobby  may  be,  it 
should  occupy  a  large  part  of  the  organization's  time.  If  any- 
one has  the  mistaken  view  that  the  organization's  purposes 
should  be  more  comprehensive,  its  aims  more  catholic,  the  sec- 
retary can  point  out  that  nothing  can  be  accomplished  without 
concentration. 

Writing  reports  for  various  committees  may  be  one  of  the 
duties  of  the  secretary.  The  first  principle  to  be  observed  in 
writing  his  report  is  that  no  mention  should  be  made  of  any 
arguments  which  tend  to  support  any  other  conclusion  than 
the  one  reached  in  the  report.  It  is  one  of  the  best  known 
facts  about  the  tired  business  man  that  he  is  only  interested  in 
the  recommendations  made  by  his  commercial  organization. 
He  cares  nothing  for  the  facts  upon  which  its  conclusions  are 
based,  nor  the  arguments  pro  and  con  which  have  been  thrashed 
out  in  the  committee.  He  is  prepared  to  agree  blindly  with  any 
recommendation  the  authorized  committee  makes  on  the  sub- 
ject. Then,  too,  a  report  of  this  kind  always  carries  great 
weight  with  the  public  at  large.  When  it  appears  in  the  news- 
paper, all  of  the  folks  stop  thinking  whatever  thoughts  they 
may  have  been  thinking  on  the  question  at  issue,  and  accept 
immediately  and  unqualifiedly  the  recommendations  of  the 
commercial  organization.  The  absence  of  any  facts  from  the 
report  and  the  omission  of  any  argument  convinces  the  com- 
munity of  the  comprehensive  view  your  organization  has  taken 
of  the  subject. 

The  secretary  should  have  as  his  first  ambition  to  be  spoken 
of  as  the  live  wire  of  the  town.  But  he  should  be  careful  to 
realize  that  there  are  two  kinds  of  live  wires.  He  should  real- 
ize that  a  live  wire  that  is  quietly  performing  its  duty  is  never 
heard,  rarely  seen,  seldom  thought  of.  A  live  wire  to  attract 
attention  should  get  out  of  its  proper  place,  bang  around  against 


HOW  TO  FAIL  AS  A  SECRETARY.  449 

everything  within  reaching"  distance,  short-circuit  the  machin- 
ery, and  start  a  fire.  Then  everybody  knows  that  there  is  a  live 
wire  around. 

The  secretary  should  realize  that  the  average  business  man 
and  the  average  professional  man  has  a  very  narrow  point  of 
view.  He  is  intent  on  making  nioney,  and  quite  often  he  has 
the  mistaken  supposition  that  the  commercial  organization  is 
interested  in  commerce.  It  will  be  helpful  in  dispelling  this 
misapprehension  for  the  secretary  to  keep  himself  aloof  from 
commerce  as  much  as  possible.  When  the  pickle  manufacturer 
calls  on  you,  recite  Shelley  to  him.  He  needs  the  broadening 
influence  of  your  culture.  If  one  of  your  directors  runs  a  saw 
mill,  he  would  rather  hear  you  discuss  Bernard  Shaw's  latest 
play  than  anything  else  in  the  world.  You  shouldn't  read 
commercial  and  financial  journals  for  fear  of  getting  into  a  rut 
yourself.  Those  of  your  members  who  are  interested  in  real 
estate  will  appreciate  it  beyond  words  if  you  will  talk  to  them 
about  unearned  increment  and  the  right  of  the  city  to  excess 
appropriation.  The  manufacturer  who  has  been  meeting  a  pay- 
roll for  forty  years  will  find  your  views  on  the  nobility  of  man- 
ual labor  exceedingly  refreshing.  In  short,  the  important  thing 
is  to  control  the  conversation  yourself  whenever  you  come  into 
contact  with  your  members,  and  you  should  control  it  along 
the  broadening,  cultural  lines  which  represent  the  highest  ideals 
toAvard  which  your  young  life  is  seeking  to  express  itself. 

It  is  never  Avise  to  bother  the  president  or  the  directors 
with  the  criticisms  you  happen  to  hear  of  the  organization.  It 
is  unfair  to  them  to  burden  their  minds  with  these  details,  and 
besides  it  is  your  duty  to  endure  criticism  in  dignified  silence. 

And  finally,  there  is  one  infallible  test  of  success  or  failure. 
If  we  hold  our  jobs  Ave  have  succeeded.  If  Ave  lose  them  aa'c  have 
failed.  Are  not  the  successful  secretaries  those  AA'ho  have  taken 
expediency  as  their  Avatchword,  have  avoided  the  pitfalls  of  a 
decisiA^e  position,  have  ncA^er  regarded  their  organizations  as 
instruments  of  human  progress,  but  rather  as  the  medium 
tlirough  Avhich  they  maintain  their  livelihood? 

And  are  not  the  secretaries  Avho  have  failed  those  quixotic 
spirits  Avho  have  fought  Avithin  their  organizations  for  things 
they  believed  to  be  right,  against  a  majority — against  almost 
a  unanimous  membership,  and  have  at  least  acknoAvledged  the 
bitterness  of  defeat  and  experienced  the  humiliation  of  dis- 
missal?   Of  course  these  are  the  failures. 

16 


450  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

The  National  Association  of  Commercial 
Organization  Secretaries 

By  WILLIAM  GEORGE  BRUCE 

The  National  Association  of  Commercial  Organization  Sec- 
retaries has  completed  a  career,  sufficiently  long  and  useful, 
to  deserve  historic  record.  While  the  organization  is  compara- 
tively young  and,  therefore,  its  story  brief,  it  presents  an  evo- 
lution in  a  new  calling — a  calling  that  is  a  vital  factor  in  Ameri- 
can community  progress^ — and,  therefore,  not  Anthout  some 
national  as  well  as  local  import. 

It  records  a  period  which  has  brought  the  scope  and  func- 
tion of  the  commercial  secretary  into  clearer  relief,  his  methods 
and  operations  upon  a  sounder  basis,  and  his  future  upon  a 
more  established  footing. 

The  story  of  the  association,  with  its  pioneering  predeces- 
sors, also  embraces  the  most  interesting  as  well  as  the  most  im- 
portant period  in  the  history  of  secretarial  service.  It  marks 
a  transition  from  hazy  conceptions  to  fixed  definitions,  from 
spasmodic  dabbling  to  earnest  direction,  from  uncertainty  to 
positiveness. 

In  a  general  way  there  has  been  a  consciousness  that  the 
responsibilities  of  commercial  bodies  are  primarily  predicated 
upon  community  needs  and  aspirations;  that  these  must  be 
defined  and  established  before  concerted  effort  in  realizing  them 
is  applied;  and  that  the  possibilities  of  the  community  along 
economic,  civic  and  social  progress  must  be  analyzed  by  and 
realized  through  the  medium  of  collective  effort.  But,  today, 
commercial  bodies  are  more  certain  of  their  ground,  and  ap- 
proach the  elements  of  scope,  method  and  aim  Avitli  greater  as- 
surance. They  have  a  higher  appreciation  of  their  mission  and 
a  firmer  grasp  upon  their  problems,  obligations,  and  mode  of 
procedure. 

Unity  of  Thought  and  Action 

Individual  inclination  and  self  interest  are  basic  and  form 
the  mainspring  of  all  human  progress.  But,  when  it  is  remem- 
bered that  detached  individual  or  diverse  effort  in  behalf  of 
a  common  cause  can  lead  to  nothing,  it  is  promptly  recognized 

♦Address  delivered  at  the  Indianapolis  meeting  of  the  National  Associa- 
tion of  Commercial  Organization  Secretaries,  October  28,  1919. 


NATIONAL  ASSOCIATION  COMMERCIAL  SECRETARIES.  451 

that  unity  of  thought  and  action  must  be  employed.  Nor  can 
the  agencies  of  gor\^ernment,  frequently  created  out  of  party 
strife  and  always  restricted  by  laAv,  legitimately  engage  in  local 
promotional  effort. 

If  laudable  ends  and  purposes  are  to  be  achieved  for  the 
community,  which  cannot  be  successfully  fostered  by  the  lone 
individual  or  on  the  other  hand  by  the  local  government,  it  only 
follows  that  the  collective  citizenship,  marshalled  along  non- 
partisan and  unselfish  lines  is  best  fitted  to  perform  the  task. 
Hence  the  modern  commercial  body. 

That  someone  should,  sooner  or  later,  conceive  the  idea  of 
associating  commercial  secretaries  for  educational  purposes, 
was  to  be  expected.  That  such  an  organization  would  grow  into 
a  compact  whole,  become  truly  representative  in  character,  and 
realize  its  purposes,  remained  to  be  seen. 

Naturally,  during  its  earlier  history,  this  organization 
passed  through  all  the  vicissitudes  of  early  childhood.  Its  in- 
fantile ailments  were  various  and  frequent,  threatening  at 
times  to  snuff  out  its  young  life.  But,  it  continued  to  live,  and 
gradually  grew  into  a  lusty,  powerful  and  serviceable  body. 

This  period  also  marks  a  notable  era  in  the  life  of  the  com- 
mercial bodies  themselves.  The  young  men  who  have  yearly 
come  to  these  gatherings  have  carried  away  new  inspiration, 
new  ideas,  new  expedients  to  their  several  organizations.  They 
have  been  taught  to  recognize  the  modern  commercial  body  in 
the  light  of  a  faith — a  faith  in  human  nature,  in  common  coun- 
sel and  in  concerted  action — a  faith  in  the  community,  its  de- 
velopment, its  opportunities,  its  progress.  They  have  been 
taught  to  espouse  the  highest  aspirations  of  American  urban 
life.  In  brief,  the  period  with  which  we  are  dealing  marks  an 
epoch  in  that  promotional  effort  which  constitutes  the  true 
mission  of  the  modern  commercial  body  as  exemplified  in  this 
country. 

Historic  Outline 

The  National  Association  of  Commercial  Organization  Sec- 
retaries had  its  beginning  October  10th,  1906,  in  Binghampton, 
N.  Y.  Twenty -five  secretaries  coming  from  New  York,  Penn- 
sylvania, and  New  Jersey  formed  what  was  then  known  as  the 
Inter-State  Association  of  Commercial  Executives.  It  later 
developed  into  the  American  Association  of  Commercial  Execu- 
tives.    They  represented  the  Schenectady  Business  Men's  As- 


452  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES, 

sociation,  Ithaca  Business  Men's  Association,  Elmira  Chamber 
of  Commerce,  Wilkes  Barre  Board  of  Trade,  Syracuse  Cham- 
ber of  Commerce,  Erie  Chamber  of  Commerce,  Scran  ton  Board 
of  Trade,  Harrisburg  Board  of  Trade,  Cornell  Chamber  of  Com- 
merce, Rochester  Chamber  of  Commerce,  Buffalo  Chamber  of 
Commerce,  Atlantic  City  Bureau  of  Publicity  and  the  Bing- 
hampton  Chamber  of  Commerce. 

The  historian,  James  A.  Bell,  of  Harrisburg,  Pa.,  who 
told  the  story  six  years  later  at  Louisville,  refers  to  Clum, 
Smith,  Clark,  Gitchell  and  himself  as  the  Old  Guard.  The 
annual  meetings  were  held  at  Harrisburg,  Pa.,  in  1907;  At- 
lantic City,  N.  J.,  1008;  Rochester,  N.  Y.,  1909;  Grand  Rapids, 
Mich.,  1910;  Louisville,  Ky.,  1911;  Washington,  D.  C,  1912; 
St.  Paul,  Minn,  1913;  Cincinnati,  O.,  1914. 

The  Central  Association  of  Commercial  Secretaries  was 
formed  at  Cincinnati,  O.,  in  1909.  The  credit  for  originating 
this  organization,  we  are  told,  must  go  to  Will  L,  Finch.  The 
presidents  elected  at  the  various  meetings  held  during  the  life 
of  the  organization  were  the  following : 

1909 — Cincinnati,  Ohio — William  G.  Gibson,  Chicago,  111. 

1910 — Milwaukee,  Wis. — R.  G.  McClure,  Indianapolis,  Ind. 

1911— Chicago,  111.— J.  M.  Guild,  Omaha,  Nebr. 

1912 — Indianapolis,  Ind. — E.  M.  Glendenning,  Kansas 
City,  Mo. 

1913 — Omaha,  Nebr. — William  George  Bruce,  Milwaukee, 
Wis. 

In  1913  Mr.  S.  Cristy  Mead  at  the  St.  Paul  meeting,  w^here 
he  was  elected  president  of  the  American  Association,  was 
authorized  to  confer  with  the  Central  Association  of  Commer- 
cial Secretaries  with  a  view  of  consolidating  the  two  bodies. 
At  the  same  time  the  w  riter,  who  headed  the  Central  Associa- 
tion, championed  an  amalgamation  which  w^as  finally  consum- 
mated at  the  Cincinnati  meeting  in  1914. 

The  National  Association  of  Commercial  Organization  Sec- 
retaries became  the  successor  of  the  tw^o  bodies.  Its  meetings 
have  since  been  held  in  the  cities  here  named  and  headed  by 
th  following  men  as  presidents : 

1915— St.  Louis,  Mo.— S.  Cristy  Mead,  New  York  City. 

1916 — Cleveland,  Ohio — William  George  Bruce,  Milwau- 
kee, Wis. 

1917 — Chicago,  111. — James  A.  McKibbon,  Boston,  Mass. 


NATIONAL  ASSOCIATION  COMMERCIAL  SECRETARIES.  453 

1918 — Rochester,    N.    Y. — Howard    Strong,    Minneapolis, 

Minn. 
1910 — Indianapolis,  Ind. — John  M.  Guild,  Kansas  City, 

Mo. 

Area  and  Vision 

The  earlier  secretarial  conventions  held  in  this  country 
very  properly  adhered  to  the  most  timely  program  topics. 
While  some  of  these  were  discussed  with  thoroughness  others 
came  in  for  meagre  or  superficial  attention  only.  And  yet  some 
of  the  programs  covered  a  range  of  subjects  which  extended 
far  beyond  the  immediate  problems  concerning  secretaries  and 
commercial  bodies.  They  rambled  into  factory  and  transpor- 
tation problems,  foreign  trade,  waterways  and  city  planning, 
ete.  x\t  the  same  time  they  discussed  membership  mainte- 
nance, new  industries,  the  value  of  conventions,  and  other  im- 
mediate and  pertinent  organization  problems. 

Some  of  the  speakers,  however,  were  inclined  to  hold  their 
treatment  of  subjects  within  narrow  limits.  They  dealt,  to  a 
large  extent,  with  local  experience,  local  viewpoints  and  local 
conclusions.  The  result  was  that  nerv^  departures  and  projects, 
partially  developed  and  realized  by  one  locality,  were  frequent- 
ly emphasized  to  the  exclusion  of  the  completed  and  successful 
experiments  of  another  locality. 

It  became  evident  here  that,  in  the  treatment  of  any  im- 
portant subject,  the  experience  of  many  minds  and  localities 
must  be  consulted  in  order  to  reach  reliable  deductions  and  con- 
clusions. Furthermore,  it  became  apparent  that  the  human 
vision  must  go  beyond  local  color  and  environment,  and  extend 
over  greater  area  and  penetrate  into  a  greater  variety  of  con- 
ditions in  order  to  bring  the  whole  truth  to  the  surface. 

The  program  builders  of  a  later  day  recognized  this  broad- 
er conception  of  their  function.  They  selected  their  subjects 
with  greater  discrimination  and  urged  upon  the  speakers  the 
value  of  bringing  into  play  a  wider  range  of  observation  and 
a  deeper  analysis  with  the  result  that  the  addresses  gradually 
grew  in  strength  and  character. 

The  builders  of  the  organization  also  wisely  held  their 
deliberations  within  a  properly  defined  domain.  They  re- 
frained from  entering  upon  a  discussion  of  principles  and  poli- 
cies that  came  strictly  within  the  province  of  the  local  com- 
mercial body,  and  confined  themselves  to  secretarial  method;® 


454  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

and  modes  of  procedure.  Every  topic  was  dealt  with  compre- 
hensively and  ably.  Every  document  became  an  authoritative 
treatise.  Every  volume  of  the  proceedings  became  a  dependable 
reference  book. 

Thus,  a  review  of  convention  programs  for  the  past  decade 
reveals  not  only  an  evolution  in  the  subjects  chosen  but  also 
in  the  manner  of  their  treatment.  They  note  a  trend  from  the 
obvious  to  the  complex,  and  a  gradual  penetration  to  the  in- 
nermost springs  of  organization  success.  In  fact,  the  present 
program  goes  to  the  very  core  of  secretarial  efficiency. 

I  do  not  mean  to  convey  the  impression,  however,  that  the 
main  topics  have  all  been  exhausted  and  that  the  program 
makers  of  the  future  will  run  dry  for  want  of  material.  An 
examination  of  tlie  several  manuscripts  submitted  by  this  or- 
ganization and  its  predecessors  reveals  the  fact  that  there  are 
still  topics  that  have  not  as  yet  been  comprehensively  dealt 
with,  or  that  must  be  reconsidered  in  the  light  of  changed  con- 
ditions and  of  later  experiences. 

Ideals  and  Standards 

The  renaissance  that  followed  the  merger  of  the  two  bodies 
into  the  one  national  organization  also  led  to  the  fostering  of 
fixed  standards  and  ideals.  Those  who  sought  to  place  the 
secretarial  calling  upon  a  higher  plane  earnestly  championed 
aims  and  accomplishments  that  were  apparently  far  above 
the  reach  of  the  average  but  in  reality  within  the  grasp  of  all. 

While  it  is  impossible  to  rear  a  completed  secretary  in  a 
day,  or  to  endow  the  average  with  all  the  mental  and  tempera- 
mental qualities  that  make  for  the  perfect,  it  is  possible  to  set 
up  the  desirable  and  the  attainable.  A  sincere  effort  to  live 
up  to  an  ideal  constitutes  in  itself  an  expression  of  progress. 
It  spells  an  upward  rather  than  a  downward  tendency,  dispels 
lethargy  and  indifference,  and  stimulates  nobler  purpose  and 
action. 

Those  who  believed  that  the  impossible  had  been  held  up 
to  them,  or  that  the  standards  of  efficiency  had  been  set  at  un- 
attainable heights,  have  since  applauded  the  spirit  which  sound- 
ed the  battle  cry  of  onward  and  upward.  In  reaching  out  for. 
the  things  that  make  for  a  more  complete  man,  namely  for  in- 
spiration, for  strength,  for  self-reliance,  they  have  incidentally 


NATIONAL  ASSOCIATION  COMMERCIAL  SECRETARIES.  455 

addetl  themselves  to  the  ranks  of  the  really  efficient  commer- 
cial executives. 

Another  gratifying  fact  deserves  mention  here.  The  exu- 
berance of  jouth  is  apt  to  disregard  that  poise  and  circum- 
spection necessary  in  executive  labors,  but,  the  younger  men 
in  the  profession  readily  accepteil  the  counsels  of  the  older. 
Some  of  the  veterans  generously  pointed  out  the  pitfalls  which 
await  the  recruit,  and  good-naturedly  touched  upon  the  foibles, 
conceits  and  idiosyncrasies  that  impede  the  path  to  success. 
Equally  gratifying  is  the  fact  that  a  receptive  as  well  as  help- 
ful spirit  has  characterized  the  entire  organization.  All  well- 
meant  counsel  was  cheerfully  accepted  in  the  spirit  in  which 
it  was  offered. 

Defining  Official  Relationships 

The  period  here  dealt  with  may  well  be  described  as  a  dec- 
ade of  definitions.  With  the  progress  of  time  it  was  certain 
that  an  institution  such  as  this  would  be  evolved  but  it  was 
not  certain  that  it  would  realize  a  maximum  stage  of  service. 
And  yet,  the  statement  that  it  has  accomplished  more  than  its 
progenitors  had  hoped  for  it  is  fully  Avarranted.  It  became 
within  a  short  time  a  powerful  factor  in  giving  greater  mo- 
mentum and  direction  to  commercial  organization  labors,  in 
clarifying  essentials  and  in  defining  official  relationships. 

These  definitions  cover  eligibility  to  membership  in  com- 
mercial bodies,  the  function  of  executive  officers,  the  mechan- 
ism of  organizations  and  the  purposes  for  which  they  are  cre- 
ated. They  have  made  unmistakably  clear  that  the  modern 
commerce  body  is  a  small  plant  with  a  large  purpose,  that  the 
raw  materials  consist  of  undeveloped,  incomplete  and  disjoint- 
ed conditions,  and  that  the  finished  product  is  found  in  ad- 
justments and  accomplishment,  in  construction  and  achieve- 
ment. 

This  period  too  has  thrown  the  searchlight  upon  the  con- 
stituent ingredient — membership.  Tt  has  taught  that  he  who 
bursts  in  upon  the  commercial  body  and  selfishly  asks  "What 
am  I  going  to  get  out  of  this?^'  is  far  from  having  a  proper 
conception  of  modern  commercial  organization  purpose.  Such 
men  obey  the  law  and  pay  taxes  because  they  are  compelled  to, 
little  realizing  that  a  voluntary  contribution  of  time  and  money 
to  the  local  body  constitutes  a  test  of  useful  citizenship.  During 
the  past  decade  there  have  come  upon  the  scene  in  increasing 


456  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

numbers  those  who  give  liberally  of  themselves  and  their  sub- 
stance^ in  order  that  the  welfare  of  an  entire  community  may 
be  promoted. 

AVe  are  also  clearer  on  the  essentials  in  marshalling  mem- 
bership into  a  working  body.  The  machinery  employed  in 
prompting  thought  and  action  along  promotional  lines  must  be 
properly  designed  and  built  of  the  right  material.  The  best 
business  and  professional  element  must  be  identified  with  the 
organization  and  become  an  active  constituent  part  of  the  same. 
In  other  words,  the  commercial  body  must  be  truly  representa- 
tive of  the  progressive  citizensliip  and  organize  its  component 
parts  so  as  to  effectively  perform  the  service  required  of  the 
same. 

Status  of  the  Secretary 

An  undeveloped  condition  of  the  commercial  body  only 
can  account  for  the  wrong  position  in  which  some  secretaries 
may  be  placed.  Instead  of  being  recognized  as  executives  with 
discretionary  powers  they  are,  in  instances,  reduced  to  a  mere 
recording  clerkship.  Where  such  an  officer  is  a  novice  in  sec- 
retarial duties  no  objections  can  be  raised,  and  yet  the  thought 
that  the  secretary  must  be  an  expert  in  policies  and  methods  of 
community  promotion,  and  the  intellectual  equal  of  his  board 
of  directors,  should  be  primarily  observed  in  selecting  him. 

In  order  to  fill  the  position  adequately  the  secretary  must 
l>e  resourceful  enough  to  devise,  initiate  and  recommend,  and 
after  the  committees  and  the  board  have  fixed  upon  policies 
and  departures,  he  must  be  stronc:  enous^h  to  execute.  He 
serves  on  the  one  hand  as  a  stimulus  to  thought  and  motive, 
and  on  the  other  as  the  strong  right  arm  to  construct  and 
realize.  Logically,  it  follows  that  he  cannot  fulfill  the  func- 
tion of  his  office  unless  he  knoAvs  his  town  and  its  possibili- 
ties and  the  procedure  of  inaugurating  movements  and  ob- 
jective action.  He  must  become  the  clearing  house  for  the 
ideas  and  suggestions  that  come  within  the  organization  pre- 
cincts, and,  together  with  his  associates,  subject  them  to  the 
siftinjy  process  and  to  analysis. 

It  has  always  been  my  theory  that  the  coordination  of  the 
secretary  and  his  board,  his  committees  and  membership  should 
be  clearly  defined  and  recognized  in  order  that  friction  may  be 
avoided  and  harmony  and  efficiency  be  obtained. 

Here,  of  course,  it  is  essential  that  the  secretarv  mani- 


NATIONAL  ASSOCIATION  COMMERCIAL  SECRETARIES.  457 

fest  sufficient  strength  of  character  to  meet  the  requirements 
of  his  office  and  to  adjust  himself  to  the  interrelations  which 
must  obtain  here.  The  president  and  secretary  are  not  only 
co-workers  but  also  co-equals.  They  work  as  a  team  in  the 
same  harness.  They  are  not  in  the  attitude  of  boss  and  clerk, 
but  rather  joint  workers  in  a  common  cause. 

The  tactful  secretary  recognizes  the  prerogatives  of  the 
president,  his  distinction  and  his  leadership — while  on  the  other 
hand  the  president  recognizes  the  scope  and  function  of  the 
secretary  and  the  cooperative  attitude  he  must  assume  towards 
him.  Neither  can  assume  to  arbitrarily  direct  the  other.  Tho 
source  of  authority  springs  from  the  board  of  directors  to  whose 
dictum  both  must  submit. 

This  body,  in  its  collective  capacity,  constitutes  the  highest 
authority  created  Avithin  the  organization.  The  body  mem- 
bership exercises  the  legislative  functions  of  the  organization 
and  delegates  judicial  and  administrative  powers  to  the  board 
of  directors.  The  president  is  the  presiding  officer  of  the  or 
ganization  and  the  executive  head  of  the  board,  while  the  sec 
retary  is  the  executive  head  of  the  office  force  and  of  the  ad 
ministrative  labors.  Aside  from  the  functions  outlined  here 
the  president  stands  in  an  advisory  capacity  to  the  secretary 
and  should  stimulate  all  along  the  lines  policies  and  purposes 
helpful  to  laudable  achievement. 

The  Old  and  the  New 

The  educational  influence  which  lias  so  richly  flown  from 
the  annual  gatherings  of  the  association  has  in  a  great  measure 
caused  a  change  in  the  type  of  men  who  have  gone  into  secre- 
tarial labors.  The  hurrah  circus  style  fellow,  who  shouted 
himself  hoarse  for  his  town,  lias  practically  disappeared  from 
the  scene.  Individual  brag  and  bluster  have  given  way  to 
collective  thought  and  team  work. 

It  may  seem  presumptuous  to  hold  that  a  secretary  must 
educate  his  board  of  directors,  but  it  is  not  unreasonable  to 
assume  that  the  conclusions  reached  by  the  trained  secretaries 
of  the  country,  must  in  a  greater  or  lesser  degree  be  acceptable 
to  those  entrusted  with  the  affairs  of  commercial  bodies. 

The  prestige  which  the  National  Association  of  Commer- 
cial Organization  Secretaries  has  won  for  itself,  together  with 
the  distinct'on  it  has  conferred  upon  many  of  its  members,  has 


458  QUALIFICATIONS  AND  TRAINING  OF  SECRETARIES. 

also  lifted  the  entire  secretarial  calling  upon  a  higher  plane 
and  has  given  each  man  a  better  standing  "back  home.''  While 
some  of  the  secretaries  have  been  honored  with  office  or  pro- 
gram distinction  and  have  thus  gained  in  the  eyes  of  their 
directors  and  associates,  the  rank  and  file,  too,  has  shared  in 
the  benefits  that  have  accrued  from  convention  deliberation. 
It  has  enabled  them  to  meet  with  greater  confidence  and  author- 
ity the  problems  that  have  confronted  them,  and  has  won  for 
them  a  greater  standing  with  their  associates  and  co-laborers 
at  home.  It  may  confidently  be  asserted  that  there  is  no  com- 
mercial secretary  in  the  United  States  today  who  has  become 
so  proficient  in  his  office  that  he  can  afford  to  ignore  the  edu- 
cational stimulus  and  guidance  provided  by  this  body. 

The  impetus  thus  given  to  a  singular  and  exceptional  call- 
ing has  implied  better  compensation,  higher  appreciation  and 
more  congenial  surroundings.  But,  it  has  also  gone  to  the  very 
core  of  the  great  cause  in  which  secretaries,  directors  and  com- 
mitteemen are  serving,  namely  the  stimulation  of  the  highest 
type  of  American  citizenship. 

What  of  the  Morrow? 

I  have  thus  far  spoken  retrospectively.  What  of  the  fu- 
ture? What  Avill  be  the  commercial  organization  of  tomor- 
row? What  part  will  the  secretary  play  in  the  future  economic, 
civil  and  social  life  of  his  community?  What  service  can  and 
will  this  organization  render  in  the  progress  of  American  civili- 
zation ? 

In  meeting  these  questions  T  am  readily  prompted  to  an 
optimistic  answer.  If  the  story  of  a  comparatively  recent  past 
may  be  applied  to  an  immediate  or  ultimate  future  then  the 
commercial  body  will  continue  to  grow  in  strength  and  serv- 
ice, and  become  an  ever  increasing  factor  in  the  life  of  the 
community.  It  will  not  only  be  a  common  mentor  of  local 
interests,  in  future  as  it  has  in  the  past,  but  also  the  strong 
correlating  and  coordinating  force  that  will  bind  the  economic 
and  social  factors  into  an  effective  unit,  and  lead  with  greater 
certainty  in  the  progress  of  American  urban  life. 

The  man  who  guides  and  directs  this  force  is  bound  to 
become  a  correspondingly  important  factor.  His  office  will 
assume  increasing  distinctions  and  uniqueness.     He  will  stand 


NATIONAL  ASSOCIATION  COMMERCIAL  SECRETARIES.  459 

on  a  par  with  the  school  superintendent  and  the  mayor,  one  a 
citizenship  trainer,  the  other  a  governmental  executive. 

The  commercial  secretary,  who  is  both  a  trainer  and  an 
executive,  seeking  to  vitalize  citizenship  and'  to  strengthen  gov- 
ernment, is  the  recognized  champion  for  a  community  house- 
hold that  shall  not  only  be  orderly  and  intelligent,  but  prosper- 
ous and  high-minded  as  well. 

The  collective  citizenship,  properly  marshalled  and  guided, 
may  go  far  beyond  the  legal  limitations  which  beset  local  gov- 
ernment in  launching  into  the  broad  domain  of  economic  and 
civic  advancement.  Hence,  the  commercial  secretary  not  only 
begins  where  the  school  superintendent  leaves  off,  but  occupies 
a  field  that  exceeds  in  potential  service  the  law-restricted,  and 
oftimes  politically  biased  possibilities  of  a  mayor  s  office. 

With  the  ascendancy  of  the  commercial  body,  performing 
in  the  fullest  measure  the  function  of  its  being,  expressing  the 
most  laudable  ambitions  and  the  highest  aspirations  of  the 
community,  the  commercial  secretary  will  rise  in  distinction, 
in  service  and  in  power.  In  saying  this  I  am  not  disposed  to 
exalt  the  commercial  secretary  beyond  the  station  to  which 
he  has  been  assigned,  but  I  am  certain  that  by  virtue  of  the 
growing  importance  of  his  office,  and  as  an  active  participant 
in  the  great  march  of  civilization,  he  ^^^ll  stand  out  as  a  dis- 
tinctive figure  among  his  fellow  men. 

Subserving  the  American  Spirit 

If  this  organization  has,  in  its  brief  existence,  rendered 
a  service  in  strengthening  the  integral  parts  that  constitute 
a  great  nation,  it  has  also  the  power  to  continue  that  service 
and  to  intensify  that  beneficent  influence  which  it  now  radi- 
ates into  numberless  units  of  population. 

The  prestige  and  power  of  a  great  Republic  must  spring 
from  its  component  parts.  The  enterprise  and  energy,  inven- 
tive genius  and  constructive  ability  must  be  awakened  into  con- 
stant and  continuous  action.  Citizenship  no  longer  means 
mere  obedience  to  the  law.  It  means  useful  service  as  well. 
The  patriotism  of  peace,  like  the  patriotism  of  war,  calls  for 
action — energetic  action  in  all  that  will  prompt  a  better  town 
in  order  that  there  may  be  a  greater  nation. 

That  nation  is  now  actuated  by  a  new  spirit.  The  Ameri- 
ca of  old  stretched  out  its  arms  in  Avelcome  to  the  oppressed  of 


460  QUALIFIGATIONS  AND  TRAINING  OF  SECRETARIES. 

all  lands.  It  cried  out  to  them  ''Come  to  our  shores.  Join  us 
in  building  a  nation  on  new  ideals  of  government — a  nation 
that  shall  endure  for  all  time.'' 

The  new  America  has  gone  to  other  shores,  torn  down  the 
shackles  of  autocracy,  and  cried :  ''We  have  realized  our  ideals. 
We  are  here  noAv  to  help  you  realize  your  own  dreams  of  self- 
determination,  of  democracy,  of  freedom." 

This  new  world-outlook,  Avith  its  altruism  and  concern  for 
humanity,  also  implies  a  finer  relation  between  our  fellowmen 
at  home.  It  exacts  new^er  conceptions  and  responsibilities  in 
the  direction  of  collective  community  effort,  and  inspires  broad- 
er considerations  for  the  welfare  of  the  many  as  against  the 
interests  of  the  few. 

In  the  light  of  this  new  spirit  your  mission  and  mine  be- 
comes loftier,  nobler  and  holier.  Let  us  dedicate  ourselves 
anew  to  the  task  that  is  ours,  realize  its  high  purposes,  and 
thereby  win  for  ourselves  the  proudest  distinction  that  modern 
civilization  can  confer  upon  any  man — the  title  of  true  Ameri- 
can citizenship. 

THE  END. 


INDEX 


Page 

Dedication 5 

Preface 7 


Part  I. 

Advertising  by  Commercial  Organizations 139 

Agriculture  and  Commercial  Organizations 8S 

P'arm  a  Factory 91 

Movement  for  Diversified  Farming 89 

Chamber  of  Commerce  in  City  of  "Average" 37 

Chamber  of  Commerce  of  the  United  States 180 

Business  Service  186 

Determining  Chamber  Policies 182 

How  Governed  186 

Membership  Qualifications  185 

National  Chamber  Activities 184 

National  Chamber  to  Build 189 

Nevk^  Nationalism  in  Business 181 

Organization   Membership    Service 187 

I'rogran;  of  Expansion 188 

Charity  Endorsements  and  Fraudulent  Solicitations 160 

Answering  Essential   Questions 161 

Constructive  Supervision    163 

Endorsement  Cards  Issued 166 

Methods  of  Endorsement 16o 

Task  ,  for  Commercial  Bodies 162 

Commercial  Arbitration   16S 

Commercial  Organizations 173.  179 

Conciliation 175 

Decision  and  its  Force 172.  175 

Fees  of  Trading  Bodies 179 

Methods  of  Procedure 171.  175 

Other  Plans    177 

Selection  and  Control  of  Arbitrators 169,  174 

Work  of  the  Committee 177 

Work  of  Trading  Body  Arbitration  Committees 173 

Commercial  Organizations  and  Back  Country 92 

Some  Recent  Federal  Legislation 94 

What  Commercial  Organizations  Can  Do 97 

What  Organized  Work  Involves 96 

Commercial  Organizations  and  the  Farming  Element 8(5 

Commercial  Organization  in  Town  or  Small  City 34 

Best  or  Most  Unique  Achievement 34 

Kinds  of  Promotion  Emphasized 35 

Large  Town  vs.  Small  Town  Problems 36 

Conventions.  Their  Cost  and  Value ^34 

Some  Conclusions  about  Conventions 136 

Value  of  Conventions 137 

461 


462  INDEX. 

Page 

Efficient  Commercial  Organization 25 

Commerce  Precedes  Culture 28 

Directing  Collective  Effort 29 

Economic  and  Civic  Advancement 27 

Essence  of  Promotion 26 

Essentials  of  Efficiency 29 

Government   and   Commerce 26 

Ei'^sentials  of  an  Effective  Orsranization 31 

An  Illustration    32 

Other  Things  Essential • 31 

Why  This  is  of  Importance 31 

Factors  in  Securing  Factories 70 

Attitude  of  Banks 75 

Factor  of  Chief  Importance 71 

Fund   for  Industrial  Development 76 

Industrial  Sub-division  76 

Influence  of  Market  Problems 73 

Matter  of  Money  Outlay ^ 74 

Some  Other  Important  Items 72 

Industrial  Development  by  Chambers  of  Commerce 50 

Creation  of  Conditions  Favorable  to  Industries 51 

Industrial  Surveys   50 

Offer  of  Special  Inducements  to  New  Industries 52 

Two  Types  of  Organization  Activity 51 

Industrial  Development  of  the  Small  Town 55 

Industrial   Committee    56 

Small  Town  Development 57 

Industrial  Survey  of  the  City 78 

Investigation  of  New  Industries 80 

Location  of  New  Industries 82 

Solicitation  of  New  Industries : 79 

Introduction  .- lo 

French  Originals  of  the  Chamber  of  Commerce 15 

German  Official  Chambers  of  Commerce 19 

Modern  American  Type  of  Chamber 20 

Origin  and  Works  of  American  Chambers  of  Commerce 20 

Two  Tj'pes  of  Organization  in  Switzerland 18 

Voluntary  Chambers  in  England 20 

Mission  of  Trade  Extension  Journeys 143 

Administration  and   Management 145 

Attitude  of  Visiting  Merchants 145 

From  the  Standpoint  of  Cities  Visited 144 

Organization   Service  for   Retailers 113 

Activities   of  Interest 115 

Dependency  of  Retailer 114 

Plan  for  a  Temporary  Exhibition 119 

Admission  and  Information 129 

Booths 126 

Building 124 

Concessions  130 

Cooperation  and  Advertising 121 

Educational  . 121 

Entertainment 131 

Exhibits 125 

Exhibitors   133 

Finance   and   Publicity 128 


INDEX.  463 

Page 

OfiPicers  and  Committees 123 

Organization  and  Plan 122 

Preparation 125 

Profit  or   Deficit 122 

Results  132 

Safety  and  Comfort 130 

Service 129 

Proper  Place  of  Industrial  Development  in  Work  of  Commercial  Organi- 
zation  A/ 58 

Industrial  Survey 61 

Man  and  the  Market 59 

Relations  Between  Civics  and  Commerce 42 

Short  Trips  from  a  Jobbing  Center. 147 

Long  Journifs 148 

One-Day  Outings ., 149 

Trade  Extension  Through  Excursions 146 

Trade  Extension  Trips— Methods  and  Results 150 

Benefits  to  be  Derived 156 

Conduct  of  Automobile  Trips 155 

Four  General  Methods 151 

Importance  of  Trade  Trips 151 

Methods  for  Conducting  Trips  by  Train 153 

Objects  of  the  Trips : 152 

Some  Results  from  Trade  Tours 158 

Traffic  and  Transportation  Bureaus 99 

Transportation  Problems 102 

Appointment  of  Transportation  Committee 104 

Cooperation  with  the  Carriers 104 

Cooperation   with  other  Organizations Ill 

Educational   Work ; .   105 

Relation  of  Traffic  Department  to  the  Organization 103 

Small  City  vs.  Large  City 110 

Specific   Services  Rendered 107 

What  is  an   Industrial   Survey 62 

Factors  Bearing  on  Industrial  Problems 64 

Purpose  of  Which  Factors  are  Listed 65 

What  are  the  Industrial  Problems  of  the  Community 66 

Part  II. 

Advertising  Methods  of  Commercial  Organizations 248 

Frequency  of  Publication . . . ,/. .  t. . . .  252 

House  Organ  Contents ....'....  249 

Important  as  Means  of  Communication .'...:.«-j. .  255 

Question   of  Make-TTp . . . . ..'. . . .  250 

Should  Advertising  be  Admitted ,. ; 252 

Annual  Reports.  Their  Form  and  Value -.:...::.  lc>.  yi»r.^. . . .  339 

A  Variety  of  Foi-ms .*r.  »,,.,, . .  340 

Purpose  of  Reports .....f . ,, ,;j^«. ...  J^^. . .  340 

Budgets  for  Commercial   Organizations...... ...;;.%» .-.^jviJi- ••  •  278 

Budget  Accounting  , .-^ni  vt . . .  289 

Control  of  the  Expenditure  of  Budgeted  Funds ..',i.  {)«>.. .  288 

Relation  of  Budgets  to  Working  Plans ..,..;..;; 283 

Conservation  of  Committee  Energy '^'Jik.. vI^/V.  .v. ;..-;... .  306 

Conditions  Precedent ... . » ... .....  306 

Facilities  for  Committee  Work . .-. 311 


464  INDEX. 

Page 

Methods  of  Committee  Work 314 

Source   of    Energy 308 

The   Secretary's   Function 307 

Democracy  in  Chamber  of  Commerce 193 

Membership 193 

Necessity  of  Bigness 195 

Time  for  Action 194 

Elements  of  Membership  Conservation 226 

How  Members  are  Retained 228 

Program  of  Membership  Conservation 231 

Unknown  Member 230 

Why  Members  Resign 227 

Filing  Systems  for  Chambers  of  Commerce 373 

Agenda  Card  and  Slip 381 

Automatic  Index  and  Numeric  Method 375 

Basis  for  Filing  Systems 374 

Carbon  Copies   378 

Centralization  of  Files 377 

Circular  Letters 379 

Committee  Correspondence    380 

Cross-Reference  Slips 379 

Geographic  System  376 

Illustration  of  Subjects,  Classified 384 

Illustration  of  Subjects,  Unclassified 384 

Methods  of  Construction 374 

Requisite   Principles    373 

Sorting  Tray  and  Transfer 382 

Subject  Basis  and  Numeric  Plan 377 

The  System   378 

Forms,  Records  and  Financial  Accounts 353 

Continuous    Bound    Records 370 

Principles  that  Govern 368 

Security  Uniformity   369 

Keeping  Before  the  Public 246 

An  Official  Mouthpiece 247 

Keeping  Before  the  Public 247 

Keeping  the  Members  Informed 260 

Other  Ways  of  Keeping  Members  Informed 263 

Some  Ways  of  Keeping  Them  Informed 261 

Type  of  Organization  Organs 263 

Membership  Development  and  Maintenance 221 

Converting  the  Unregenerate 222 

Next  Step  225 

Recapitulation 225 

Some  Methods 224 

Membership  Methods  in  Small  Organizations 234 

Demands  of  Members 235 

Methods  of  Recording  Minutes 342 

Brevity  Most  Desirable 345 

Character  of  Record  Books 347 

Headings  or  Side  Notes 349 

Need  of  Discrimination 343 

Secretary  Must  Efface  Himself 347 

Sending  Advance  Schedule 344 

Synopsical   Reports    346 

Writing  the  Minutes 344 


INDEX.  466 

Page 

Methods  of  Sustaining  Memberships 197 

Experience  in  Other  Cities ,  197 

Experience  of  Large  Cities 202 

Judgment  of  Smaller  Cities 217 

Membership  Arguments 206 

Membership  Solicitor 206 

Minimum  Results — Maximum  Cost 211 

New  York's  Membership  Elxperiment 204 

Plans  for  Committee  Organization 202 

Service  Men   200 

Solicitors  or  Campaigns — Which 221 

Some    Sales    Arguments 199 

Something  to  Sell 198 

When  Do  Solicitors  Pay 219 

News  Value  in  Organization  Publicity 271 

Chicago's    News    Bureau 272 

The  Creation  of  News 273 

Office  Administration    323 

Arrears  and  Delinquents 331 

Control  of  Assistants 337 

Form   of  Reports , 326 

General   Questions 323 

Getting  Acquainted    329 

Membership  Activities 328 

Most  Effective  Unit 333 

Retaining  Committee  Interest 334 

Securing  Committee  Attendance 335 

Specific  Entertainment  Features 330 

The  Handling  of  Publicity 336 

The  Use  of  Bulletin  Boards 327 

The  Use  of  Charts 324 

Who  Appoints  Committees 332 

Organization  Bulletins  —Their  Hits  and  Misses 265 

Against  Advertising  268 

Character  of  Publication 266 

Form,  Size  and  Advertising 267 

Summary 268 

Organization  Costs  and  Results 290 

Advertising  Media   299 

Budget 293 

Expediency  of  a  Surplus 295 

Expense  of  Membership  Work  and  TjOss  from  Unpaid  Dues 293 

Importance  of  the  Civic  and  Social  as  Contrasted  with  the  Commer- 
cial and  Industrial 298 

Membership  and  Income  as  Related  to  Population 290 

The  Ways  and  Means  Plan 296 

Value  of  Cafe  Service 292 

Promotional  Efforts  and  the  Public  Press 257 

Show  Your  New  spapers  You  Trust  Them 257 

When  the  Newspaper  is  Your  Best  Aid 259 

Rebuilding  an  Organization 239 

Democracy   Established    240 

Selfish  Member   242 

Service — Great  and  Small 244 

Records  of  Members.  Payment  of  Dues 350 

System  of  Membership  Accounts ,  352 

What  is  to  be  Accomplished 351 


46G  INDEX. 

Page 
Some  Dangers  of  House  Organs 269 

Some  of  the  Problems  of  Organization  Finance 275 

Budget   System 276 

Refund  Surplus  Pro  Rata 277 

Sources  of  Revenue  Classified 276 

Various  Methods  of  Financing. 277 

Stimulating  the  Organization  Machinery 317 

A  Genial  Committee  Spirit 320 

Affability  and  Good  Humor 322 

Do  Not  Withhold  Applause 319 

Element  of  Enthusiasm 318 

The  Man  from  the  Outside 321 

Sustaining  the  Interest  of  Members 236 

Fourth  Essential  to  Sustained  Interest 238 

Where  to  Hold  and  How  to  Conduct  Meetings 301 

Sub-Committee  Meetings    308 

The  Public  Affairs  Committee 302 

The  Question  of  Attendance 304 

Where  the  Real  Work  Should  Be  Done 305 


Part  III. 

Gofllege  Training  for  Secretaries 408 

Attitude  of  Universities 415 

Breadth  of  Knowledge 411 

Kind  of  Education  Required 411 

Political  and  Social  Life 410 

Sociology  and  Coordinating  Science 414 

Specialized   University   Courses 416 

Stimulating  Commercial  Life 409 

Value  of  Political  Economy , 413 

Conscious  Training  for  Secretaries 427 

Secretarial  Training    428 

The  Basis  for  Development 429 

How  to  Fail  as  a  Secretary 435 

Most  Helpful  Secretarial  Literature.  The .390 

Educational  Equipment— Reference  Matter 401 

Inspirational   Factors   Negle<.-ted 403 

Knowledge 398 

Literature  Suggested   405 

Necessity  for  Selecting 404 

Reading  as  a  Helpful  Factor 397 

The  Flood  of  Printed  Matter 400 

The  Vocational    Studies 402 

Vision  and  Enthusiasm 398 

National  Association  Commercial  Secretaries. 450 

Area  and  Vision 453 

Defining  Official   Relationships 455 

Historic  Outline 451 

Ideals  and  Standards. 454 

Status  of  the  >Secretary 4.56 

Subserving  the  American  Spirit. 459 

The  Old  and  the  New 457 

What  of  the  Morrow .: .  v.  .j,;.  i  .-^  458 


INDEX.  467 

Page 

Qualifications  of  rlie  Secretary,  The 389 

A  Seiiii-Public  Cliaracter 892 

A  Summary  of  the  Several  Fuucti(nis 894 

Action  and  Achievement 391 

In  the  Formative  Stashes 389 

Secietary  and  Board 391 

The  Promotional  Expert 393 

The  Secretary  in  the  Making 390 

Secretarial  Efficiency  and  the  College 430 

A  Course  of  Study 43l» 

Drawing  Men  from  Colleges 434 

Rudiments  of  Retail  Trade 431 

University  and  the  Secretary,  The 417 

Conclusion  426 

Intelligent   Joint   Effort 425 

Present  Opportunity    419 

Proofs  of  Business  Solidarity 420 

The  Accounting  Phase 421 

The  Administrative  Phase 422 

The   Equipment    Phase 421 

The  Marketing  Phase 423 

Undeveloped  State  of  Local  Economies 418 


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MAR    1  1935 


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vo 


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UNIVERSITY  OF  CALIFORNIA  LIBRARY 


